otto (gmbh & co kg)
TRANSCRIPT
Prospectus dated 19 March 2012
OTTO (GMBH & CO KG)(Hamburg, Federal Republic of Germany)
EUR [●],000,000 [●] % Notes of 2012/2017 (the "Notes")
Issue Price of the Notes: [●] %
Otto (GmbH & Co KG), Hamburg, Federal Republic of Germany (the "Issuer" or "Otto") will issue on or about 29 March 2012 (the
"Issue Date") the Notes in the denomination of EUR 1,000 each (the "Notes").
The Notes will be redeemed at par on 29 September 2017. They are subject to redemption (in whole, but not in part) at their
principal amount at the option of the Issuer in the event of certain changes affecting taxation in the Federal Republic of Germany
("Germany") and following a change of control (see "Conditions of Issue - § 5 Redemption, Early Redemption subparagraph 2 and
subparagraph 3", respectively).
This prospectus dated 19 March 2012 (the "Prospectus") constitutes a prospectus within the meaning of Article 5.3 of the
Directive 2003/71/EC of the European Parliament and the Council of 4 November 2003 (as amended, inter alia, by Directive
2010/73/EU) (the "Prospectus Directive"). By approving this Prospectus, the Commission de Surveillance du Sector Financier of
the Grand Duchy of Luxembourg (the "CSSF") gives no undertaking as to the economic and financial soundness of the operation
or the quality or solvency of the Issuer. This Prospectus together with all documents incorporated by reference therein will be
published in electronic form on the website of the Luxembourg Stock Exchange (www.bourse.lu). This Prospectus has been
approved by CSSF in its capacity as competent authority under the Luxembourg law relating to prospectuses (Loi relative aux
prospectus pour valeurs mobilières - "Luxembourg Prospectus Act"), which implements the Prospectus Directive into
Luxembourg law. The Issuer has requested the CSSF to provide the competent authorities in Germany and the Republic of Austria
with a certificate of approval attesting that the Prospectus has been drawn up in accordance with the Luxembourg Prospectus Act
(the "Notification").
The Notes will bear interest from and including 29 March 2012 to, but excluding, 29 September 2017 at a rate of [●] % per annum,
payable annually in arrear on 29 September in each year, commencing on 29 September 2012 (first short coupon).
The Notes will be governed by the laws of Germany.
Application will be made to the Vienna Stock Exchange AG for the Notes to be listed on the Third Market - MTF of Vienna Stock
Exchange AG ("Dritter Markt – MTF der Wiener Börse AG") and to be admitted to trading on the Third Market - MTF of Vienna
Stock Exchange AG ("Dritter Markt – MTF der Wiener Börse AG"). The Third Market - MTF of Vienna Stock Exchange AG is not a
regulated market within the meaning of the Directive 2004/39/EC of the European Parliament and the Council of 21 April 2004 on
markets in financial instruments.
The final offer price and amount, the interest rate, the issue proceeds and the yield of the issue for the Notes will be included in the
Pricing Notice (as defined in "SUBSCRIPTION, OFFER AND SALE OF THE NOTES" below) which will be published on the
website of the Luxembourg Stock Exchange (www.bourse.lu) on or prior to the Issue Date of the Notes.
Lead Manager
Raiffeisen Bank International AG
Co-Lead Manager
Berenberg Bank -
Niederlassung Wien
Raiffeisen-Landesbank
Steiermark AG
Raiffeisenverband
Salzburg
Sparkasse
Oberösterreich
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RESPONSIBILITY STATEMENT
The Issuer with its registered office in Hamburg, Germany accepts responsibility for the information
contained in this Prospectus and hereby declares that, having taken all reasonable care to ensure that
such is the case, the information contained in this Prospectus is, to the best of its knowledge, in
accordance with the facts and contains no omission likely to affect its importance.
The Issuer further confirms that (i) this Prospectus contains all information with respect to the Issuer and
its subsidiaries and affiliates taken as a whole (the "Otto Group" or the "Group") and to the Notes which
is material in the context of the issue and offering of the Notes, including all information which, according
to the particular nature of the Issuer and of the Notes is necessary to enable investors and their
investment advisers to make an informed assessment of the assets and liabilities, financial position,
profits and losses, and prospects of the Issuer and the Otto Group and of the rights attached to the
Notes; (ii) the statements contained in this Prospectus relating to the Issuer, the Otto Group and the
Notes are in every material particular true and accurate and not misleading; (iii) there are no other facts
in relation to the Issuer, the Otto Group or the Notes the omission of which would, in the context of the
issue and offering of the Notes, make any statement in the Prospectus misleading in any material
respect; and (iv) reasonable enquiries have been made by the Issuer to ascertain such facts and to verify
the accuracy of all such information and statements.
NOTICE
No person is authorised to give any information or to make any representations other than those
contained in this Prospectus and, if given or made, such information or representations must not be
relied upon as having been authorised by or on behalf of the Issuer or the Managers (as defined in
"SUBSCRIPTION, OFFER AND SALE OF THE NOTES"). Neither the delivery of this Prospectus nor any
offering, sale or delivery of any Notes made hereunder shall, under any circumstances, create any
implication (i) that the information in this Prospectus is correct as of any time subsequent to the date
hereof or, as the case may be, subsequent to the date on which this Prospectus has been most recently
amended, or supplemented, or (ii) that there has been no adverse change in the financial situation of the
Issuer which is material in the context of the issue and sale of the Notes since the date of this Prospectus
or, as the case may be, the date on which this Prospectus has been most recently amended or
supplemented, or the balance sheet date of the most recent financial statements which are deemed to be
incorporated into this Prospectus by reference or (iii) that any other information supplied in connection
with the issue of the Notes is correct at any time subsequent to the date on which it is supplied or, if
different, the date indicated in the document containing the same.
Neither the Managers nor any other person mentioned in this Prospectus, except for the Issuer, is
responsible for the information contained in this Prospectus or any other document incorporated herein
by reference, and accordingly, and to the extent permitted by the laws of any relevant jurisdiction, none
of these persons accepts any responsibility for the accuracy and completeness of the information
contained in any of these documents. The Managers have not independently verified any such
information and accept no responsibility for the accuracy thereof.
This Prospectus should be read in conjunction with any supplement hereto and the Pricing Notice, once
available, and with any other documents incorporated herein by reference.
This Prospectus contains certain forward-looking statements, including statements using the words
"believes", "anticipates", "intends", "expects" or other similar terms. This applies in particular to
statements under the "DESCRIPTION OF OTTO (GMBH & CO KG)" and statements elsewhere in this
Prospectus relating to, among other things, the future financial performance, plans and expectations
regarding developments in the business of the Group. These forward-looking statements are subject to a
number of risks, uncertainties, assumptions and other factors that may cause the actual results, including
the financial position and profitability of the Group, to be materially different from or worse than those
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expressed or implied by these forward-looking statements. The Managers do not assume any obligation
to update such forward-looking statements and to adapt them to future events or developments.
Each investor contemplating purchasing any Notes should make its own independent investigation of the
financial condition and affairs, and its own appraisal of the creditworthiness of the Issuer. This
Prospectus does not constitute an offer of Notes or an invitation by or on behalf of the Issuer or the
Managers to purchase any Notes. Neither this Prospectus nor any other information supplied in
connection with the Notes should be considered as a recommendation by the Issuer or the Managers to
a recipient hereof and thereof that such recipient should purchase any Notes.
This Prospectus reflects the status as of its date. The offering, sale and delivery of the Notes and the
distribution of the Prospectus may not be taken as an implication that the information contained herein is
accurate and complete subsequent to the date hereof or that there has been no adverse change in the
financial condition of the Issuer since the date hereof.
To the extent permitted by the laws of any relevant jurisdiction, neither any Manager nor any of its
respective affiliates accepts responsibility for the accuracy and completeness of the information
contained in this Prospectus or any other document incorporated by reference.
This Prospectus does not constitute, and may not be used for the purposes of, an offer or solicitation by
anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it
is unlawful to make such offer or solicitation.
In particular, neither this Prospectus nor any other offering or marketing material relating to the Notes
constitutes a prospectus as such term is understood pursuant to article 652a or article 1156 of the Swiss
Federal Code of Obligations or a listing prospectus within the meaning of the listing rules of the SIX
Swiss Exchange Ltd., and neither this Prospectus nor any other offering or marketing material relating to
the Notes may be publicly distributed or otherwise made publicly available in Switzerland.
The offer, sale and delivery of the Notes and the distribution of this Prospectus in certain jurisdictions are
restricted by law. Persons into whose possession this Prospectus comes are required by the Issuer and
the Managers to inform themselves about and to observe any such restrictions. In particular, the Notes
have not been and will not be registered under the United States Securities Act of 1933 (the "Securities
Act") and, subject to certain exceptions, may not be offered or sold within the United States.
For a further description of certain restrictions on offerings and sales of the Notes and distribution of this
Prospectus (or of any part thereof) see "SELLING RESTRICTIONS".
The legally binding language of this Prospectus is English. Any part of the Prospectus in German
language constitutes a translation, except for the conditions of issue of the Notes (the "Conditions of
Issue") in respect of which German is the legally binding language.
In this Prospectus all references to "€", "EUR" or "Euro" are to the currency introduced at the start of the
third stage of the European economic and monetary union, and as defined in Article 2 of Council
Regulation (EC) No. 974/98 of 3 May 1998 on the introduction of the Euro, as amended.
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TABLE OF CONTENTS
Page
SUMMARY..................................................................................................................................................5
GERMAN TRANSLATION OF THE SUMMARY.......................................................................................12
RISK FACTORS........................................................................................................................................20
ANLEIHEBEDINGUNGEN / CONDITIONS OF ISSUE.............................................................................27
DESCRIPTION OF OTTO (GMBH & CO KG) ..........................................................................................44
USE OF PROCEEDS................................................................................................................................77
TAXATION ................................................................................................................................................78
SUBSCRIPTION, OFFER AND SALE OF THE NOTES...........................................................................86
SELLING RESTRICTIONS .......................................................................................................................88
GENERAL INFORMATION.......................................................................................................................91
DOCUMENTS INCORPORATED BY REFERENCE ................................................................................93
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SUMMARY
The following constitutes the summary (the "Summary") of the essential characteristics of, and risks
associated with, the Issuer and the Notes. This Summary should be read as an introduction to this
Prospectus. It does not purport to be complete and is taken from, and is qualified in its entirety by, the
remainder of this Prospectus. Any decision by an investor to invest in the Notes should be based on
consideration of this Prospectus as a whole. Where a claim relating to the information contained in this
Prospectus is brought before a court, the plaintiff investor might, under the national legislation of such
court, have to bear the costs of translating the Prospectus before the legal proceedings are initiated. Civil
liability attaches to the Issuer who has tabled this Summary including any translation thereof, and applied
for its notification, but only if the Summary is misleading, inaccurate or inconsistent when read together
with the other parts of this Prospectus.
Summary in respect of the Notes
Words and expressions defined in the Conditions of Issue of the Notes reproduced elsewhere in this
Prospectus shall have the same meanings in this Summary.
The final offer price and amount, the interest rate, the issue proceeds and the yield of the issue will be
included in the Pricing Notice (as defined in "SUBSCRIPTION, OFFER AND SALE OF THE NOTES"
below) which will be published on the website of the Luxembourg Stock Exchange (www.bourse.lu) on or
prior to the Issue Date of the Notes.
Issuer: Otto (GmbH & Co KG)
Lead Manager: Raiffeisen Bank International AG
Co-Lead Manager: Berenberg Bank - Niederlassung Wien
Raiffeisen-Landesbank Steiermark AG
Raiffeisenverband Salzburg
Sparkasse Oberösterreich
Paying Agent: Raiffeisen Bank International AG
Principal Amount: € [●]
Offer of the Notes,
Determination of Principal
Amount, Issue Price,
Interest Amount and further
information (Pricing Notice)
The Notes will be offered to institutional investors during an accelerated
bookbuilding process, which is expected to commence on 20 March 2012
and is expected to end on 21 March 2012.
The Issue Price, the Re-Offer Price (which will be equal to the Issue Price
minus a sales concession of 1.5 %), the aggregate principal amount of
Notes to be issued, the interest rate, the issue proceeds and the yield of
the issue will be included in the Pricing Notice (as defined in "Offer, Sale
and Subscription of the Notes" below) which will be published on the
website of the Luxembourg Stock Exchange (www.bourse.lu) on or prior
to the Issue Date of the Notes.
The Notes will be offered to to institutional investors and to retail investors
at the Issue Price during an offer period which is expected to commence
on 22 March 2012 and is expected to end on 26 March 2012 (the "Offer
Period").
There are no conditions to which the offer is subject. During the Offer
Period investors may submit their offers to purchase Notes, using the
information system Bloomberg or any other commonly used information
systems or, following the publication of the Pricing Notice, through
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banking institutions in Luxembourg, Germany and Austria. Any investor
who has submitted an order in relation to the Notes whose order is
accepted will receive a confirmation by electronic mail, fax or through
commonly used information systems relating to the respective allotment
of Notes.
Delivery and payment of the Notes will be made within seven business
days after the date of pricing of the Notes and the confirmation of the
allotment to investors. The Notes will be delivered via book-entry through
the Clearing System and its account holding banks against payment of
the Issue Price.
Issue Price: [●] %
Issue Date: 29 March 2012
Denomination: The Notes will be issued in a denomination of € 1,000 each.
Form of Notes: The Notes are in bearer form and will initially be represented by a variable
global Note (the "Global Note") without interest coupons which will be
kept in custody by or on behalf of the central securities depository and
clearing system (Wertpapiersammelbank) of Oesterreichische
Kontrollbank Aktiengesellschaft. No definitive Notes or interest coupons
will be issued.
Interest: The Notes will bear interest from and including 29 March 2012 to, but
excluding, 29 September 2017 at a rate of [●] % per annum, payable
annually in arrear on 29 September in each year, commencing on
29 September 2012 (first short coupon).
Taxation: Principal and interest shall be payable without withholding or deduction for
or on account of any present or future taxes or duties of whatever nature
imposed or levied by or on behalf of the Federal Republic of Germany or
by or on behalf of any political subdivision or authority thereof or therein
having power to tax (the "Withholding Taxes"), unless such withholding
or deduction is required by law. In such event, the Issuer will, subject to
the exceptions set out in the Conditions of Issue, pay such additional
amounts as shall be necessary in order that the net amounts received by
the Holders after such withholding or deduction shall equal the respective
amounts of principal and interest which would otherwise have been
receivable in respect of the Notes in the absence of such withholding or
deduction.
Maturity The Notes will be redeemed at par on 29 September 2017.
Early Redemption for
Taxation Reasons:
Early redemption of the Notes for reasons of taxation will be permitted, if
as a result of any change in, or amendment to, the laws or regulations
(including any amendment to, or change in, an official interpretation or
application of such laws or regulations) of the Federal Republic of
Germany or any political subdivision or taxing authority thereto or therein
affecting taxation or the obligation to pay duties of any kind, the Issuer will
become obligated to pay additional amounts on the Notes, all as more
fully set out in the Conditions of Issue.
Early Redemption upon
Change of Control
If a "Change of Control" occurs, the Issuer may at its sole discretion elect
to either (i) obtain, within six months following the Change of Control, an
Investment Grade Rating or better for the Notes from Moody's Investors
Services Limited ("Moody's") or Standard & Poor's Rating Services, a
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division of The McGraw-Hill Companies Inc. ("S&P") or its respective
successor companies; or (ii) redeem the Notes, in whole but not in part, at
their principal amount.
If the Issuer has elected to apply for an Investment Grade Rating for the
Notes and such rating has not been granted within 6 months after the
Change of Control, the Issuer shall promptly publish a date for the
redemption of the Notes which date shall not be earlier than ten and not
be later than twenty days after such publication.
A "Change of Control" occurs if any person or persons, who on the Issue
Date were not partners of the Issuer or shareholders of its general partner,
acting in concert as defined in § 22 (2) of the German Securities Trading
Act (Wertpapierhandelsgesetz – WpHG) or any person or persons acting
on behalf of any such person(s), at any time directly or indirectly
acquire(s) (i) more than 50 % of the limited liability capital
(Kommanditkapital) of the Issuer or more than 50 % of the share capital
(Stammkapital) of its general partner, or (ii) such number of partnership
interests (Anteile am Kommanditkapital) of the Issuer or shares in the
capital (Anteile am Stammkapital) of its general partner carrying more
than 50 % of the voting rights exercisable at the respective general
meeting of the Issuer or the general partner.
Status of the Notes: The obligations under the Notes constitute direct, unconditional,
unsecured and unsubordinated obligations of the Issuer ranking pari
passu among themselves and pari passu with all other unsecured and
unsubordinated obligations of the Issuer, present or future, unless such
obligations are accorded priority under mandatory provisions of statutory
law.
Negative Pledge: In the Conditions of Issue the Issuer agrees and shall procure in respect
of its Material Subsidiaries not to provide any security (other than
Permitted Security) for any Capital Market Indebtedness (as defined in § 2
of the Conditions of Issue) or for certain asset-backed securities as
defined in § 2 (2).
Events of Default: The Notes will provide for events of default entitling Holders to demand
immediate redemption of the Notes, all as more fully set out in the
Conditions of Issue.
Cross Default: The Conditions of Issue contain a cross default clause in relation to non-
payment of payment obligations in respect of Capital Markets
Indebtedness (as defined in § 2 of the Conditions of Issue) in excess of
€ 10,000,000.
Schuldverschreibungsgesetz
2009 (German Act on Issues
of Debt Securities):
The Notes will be subject to the German Act on Issues of Debt Securities
(Gesetz über Schuldverschreibungen aus Gesamtemissionen, "SchVG"),
which, inter alia, provides for the possibility of the Issuer and/or the
Guarantor to amend the Terms and Conditions of the Notes with the
consent by majority vote of the Noteholders and to appoint a joint
representative (gemeinsamer Vertreter) for the preservation of their rights.
Governing Law: The Notes will be governed by German law.
Jurisdiction: Non-exclusive place of jurisdiction for any legal proceedings arising under
the Notes is Hamburg.
Listing and admission to Application will be made for the Notes to be admitted to trading on the
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trading: Vienna Stock Exchange AG and to be listed on the Third Market - MTF of
Vienna Stock Exchange AG.
Selling Restrictions: The offer and the sale of the Notes and the distribution of offering
materials are subject to specific restrictions. The relevant restrictions
applicable in the European Economic Area, the United States of America
and the United Kingdom of Great Britain and Northern Ireland are set out
under "SELLING RESTRICTIONS".
Clearance and Settlement: The Notes will be accepted for clearing through the central securities
depository and clearing system (Wertpapiersammelbank) of
Oesterreichische Kontrollbank Aktiengesellschaft.
Security Code ISIN: AT0000A0UJL6
Common Code: 076135851
WKN: A1ML0L
Availability of documents: This Prospectus and the documents incorporated by reference herein can
either be found on the website of the Luxembourg Stock Exchange
(www.bourse.lu) or are obtainable in printed form at the address of the
Paying Agent in Austria, Raiffeisen Bank International AG, Am Stadtpark
9, 1030 Vienna, Austria.
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Summary in respect of the Issuer and the Otto Group
The Issuer was established on 17 August 1949 as single entity under the name Werner Otto, Schuh-
Versand. Since 8 October 2002 it exists under its current legal name as Otto (GmbH & Co KG) and is
registered with the commercial register (Handelsregister) of the local court (Amtsgericht) of Hamburg
under HRA 62024. The corporate seat of the Issuer is Wandsbeker Straße 3-7, 22172 Hamburg,
Germany and its telephone number is +49 40 64 61 – 0. Otto (GmbH & Co KG) as the holding company
of the Otto Group holds directly and indirectly the respective stakes in the Otto Group's operating
companies. Moreover, the Issuer is an operating company that is active primarily in the multichannel
retail business. Consequently, the Issuer sells its merchandise via three distribution channels: the
catalogue business, e-commerce, and over-the-counter retail. The Issuer is indirectly owned by the Otto
family by more than 98 %.
The fiscal year of the Issuer and of the Otto Group starts on 1 March of the year and ends on the 28/29
February of the subsequent year.
Around 50,000 employees work for the Otto Group worldwide (as of February 2011). The Group has 123
companies of primary significance and operates in 20 countries in Europe, North America and Asia. It is
organised into three business segments: Multichannel Retail, Financial Services and Services. In the
financial year 2010/11 42 % of sales were generated outside Germany. The Group sees itself as the
world's number two in business to customer (B2C) online trade, second only to Amazon.
Otto Group revenue in the fiscal year 2010/11 (to 28 February 2011) was EUR 11,404 million.
The segment Multichannel Retail pools domestic and international companies that offer their
merchandise via catalogue business, e-commerce, and over-the-counter retail. The market position of
Otto is based on various company brands. Besides OTTO in particular Schwab, Heine, Bonprix and Baur
have a good awareness under German consumers. Likewise Sportscheck, Manufactum, Frankonia and
myToys are well known in Germany. Outside Germany, the names that are known best are the 3 Suisses
International-Group in France, Crate and Barrel in the USA, Grattan and Freemans in Great Britain and
Otto Japan in Japan. Otto Group also operates on the Russian market with a range of products under
several different brands.
The Financial Services segment comprises all international financial services operations across the Otto
Group. The focus is on retail-related products such as consumer loans and liquidity management. The
biggest revenue generator in the segment is the internationally operating EOS Group.The EOS Group's
40 operating companies in more than 20 countries serve 20,000 customers. The Hanseatic Bank, which
is also part of the financial services segment, was founded in 1969 as a consumer credit institution to
handle goods financing for Otto Versand customers. In 2005, Société Générale acquired a 75 % stake in
Hanseatic Bank; Otto Group retained the remaining 25 % stake. The Otto Group is directly and indirectly
a shareholder in Cofidis through the holding company 3 Suisses International with a share of 57 % with
Cofidis being controlled by the French cooperative bank, Crédit Mutuel.
The segment Services combines Otto Group's logistics and travel services providers. All Hermes
logistics operations are bundled under the Hermes umbrella brand. As a global enabler of a complete
retail and services portfolio, Hermes helps its customers purchase retail-related services along the entire
value chain. Logistic operations are not only provided for retail companies within the Otto Group, but also
for some of the well-known companies in Europe, e.g. for QVC, Hennes&Mauritz, Deutsche Bahn, Lands
End, Tom Tailor and others. With around 14,000 parcel shops the Hermes Logistic Group has, based on
Otto Group's own market analysis, the largest network of branch offices in Germany for the acceptance
of private consumer parcels. As of 1 January 2012 Otto Group sold 49 % of its stake in its Otto Freizeit
und Touristik (OFT) holding to VR meine Raiffeisenbank Altötting-Mühldorf, which resulted in the
deconsolidation of OFT. OFT's activities are not among the Otto Group's core business activities.
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The Executive Board of the Otto Group consists of eight board members. The Chief Executive Officer is
Hans-Otto Schrader, the Chief Financial Officer Jürgen Schulte-Laggenbeck.
The Issuer has appointed KPMG AG Wirtschaftsprüfungsgesellschaft, Michaelis Quartier, Ludwig-
Erhard-Straße 11-17, 20459 Hamburg, Germany, as auditor of the company.
The following table sets out key consolidated financial information:
Period from 1
March until 30
November 2011
(unaudited)
Period from 1
March until 30
November 2010
(unaudited)
Financial Year
ended 28
February 2011
(audited)
Financial Year
ended 28
February 2010
(audited)
(in EUR thousand)
Revenue ................................................................ 8,554,004 8,346,271 11,403,913 10,132,044
EBITDA................................................................ 482,583 574,553 666,719 326,560
EBIT............................................................................. 308,401 400,839 377,521 46,216
EBT.............................................................................. 156,237 221,345 256,515 -133,096
Gross cash flow ........................................................... 456,871 576,323 693,180 414,759
30 November
2011
30 November
2010
28 February
2011
28 February
2010
Equity........................................................................... 2,074,588 2,083,524 2,080,514 2,036,207
Balance sheet total ...................................................... 7,668,602 7,691,616 7,717,543 7,498,282
Net financial debt (incl. pension provisions) ...................... 2,473,039 2,339,506 2,392,821 1,931,955
The following table sets out key consolidated financial information for the Financial Services segment at
equity consolidated. 'Financial Services at Equity' shows the Otto Group's retail and services sectors,
excluding the bank-type structures in the Financial Services segment. This permits a better comparison
with retail companies that do not have such banking activities.
Period from 1
March until 30
November 2011
(unaudited)
Period from 1
March until 30
November 2010
(unaudited)
Financial Year
ended 28
February 2011
(audited)
Financial Year
ended 28
February 2010
(audited)
(in EUR thousand)
Revenue ................................................................ 8,161,185 8,005,917 10,950,339 9,745,017
EBITDA................................................................ 434,257 528,035 696,733 304,345
EBIT............................................................................. 270,872 363,391 420,299 34,520
EBT.............................................................................. 136,706 198,117 228,286 216,951
Gross cash flow ........................................................... 531,562 501,991 583,079 1,011,079
30 November
2011
30 November
2010
28 February
2011
28 February
2010
Equity........................................................................... 2,010,314 2,018,808 2,014,846 1,970,785
Total assets ................................................................ 7,298,255 7,279,997 7,346,606 7,142,234
Net financial debt (incl. pension provisions) ...................... 2,019,842 1,891,492 1,930,790 1,454,132
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Summary in respect of Risk Factors
In respect of the Issuer
The Issuer is the ultimate holding company within the Otto Group, an internationally active trading and
services group. Otto Group is divided into the three segments Multichannel Retail which is the Group's
core business, Financial Services and Services which consists primarily of logistics and travel-related
services.
The engagement in these business segments involves several economic and other risks, such as
dependency on customer taste and fashion trends. Consumers could reduce their expenditures
depending on the continuation or further deterioration of the current unfavorable macroeconomic
conditions. Moreover, there are risks arising from intense price competition, changing customer taste and
fashion trends, non-payment by customers, borrower default risk, fluctuations in currency exchange
rates, risk factors in respect of management and employees, risks in connection with the efficiency of the
logistical systems, IT risks (in particular at call centers), risk factors in respect of mergers and
acquisitions, risk factors in respect of debt, tax risks, risk factors with respect to solvency of suppliers,
risk factors arising out of the international procurement of goods, risk factors in respect to the increase in
acquisition price of goods that could not be passed on the customers and risk factors resulting from
working conditions of suppliers. If these risks materialise, they could materially adversely affect the Otto
Group's financial position, cash flows and results of operations and the ability of the Issuer to perform its
obligations under the Notes respectively.
In respect of the Notes
An investment in the Notes involves certain risks associated with the characteristics, specification and
type of the Notes which could lead to substantial losses and total loss – see introduction to the section
"Risk Factors" - that Holders would have to bear in the case of selling their Notes or with regard to
receiving interest payments and repayment of principal. Risks regarding the Notes comprise, inter alia,
the following risks: risk that the Notes may not be a suitable investment for a particular investor, liquidity
risks, risk of early redemption, market price risk, risk that the market value of the Notes could decrease if
the creditworthiness of the Otto Group worsens, currency risk, risks arising out of the application of the
German Law on Debt Securities (Schuldverschreibungsgesetz) 2009, the risk that the price of the Notes
decreases as a result of changes in the market interest rate, risks in connection with the negative pledge
and potential asset backed securities transactions as well as risks in connection with the negative pledge
and borrowings not classified as Capital Market Indebtedness (as defined in § 2 (2) of the Conditions of
Issue).
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GERMAN TRANSLATION OF THE SUMMARY
Der folgende Abschnitt stellt die Zusammenfassung (die "Zusammenfassung") der wesentlichen
Merkmale und Risiken der Emittentin und der Schuldverschreibungen dar. Die Zusammenfassung ist als
Einleitung zu diesem Prospekt zu verstehen. Sie ist keine vollständige Darstellung und im
Zusammenhang mit dem Prospekt zu lesen. Der Anleger sollte jede Entscheidung zur Anlage in die
Schuldverschreibungen auf die Prüfung des gesamten Prospekts stützen. Für den Fall, dass vor einem
Gericht Ansprüche aufgrund der in diesem Prospekt enthaltenen Informationen geltend gemacht werden,
könnte der klagende Anleger in Anwendung einzelstaatlicher Rechtsvorschriften die Kosten für die
Übersetzung des Prospekts vor Prozessbeginn zu tragen haben. Die Emittentin, die diese
Zusammenfassung einschließlich jede Übersetzung davon vorgelegt und deren Notifizierung beantragt
hat, kann haftbar gemacht werden, jedoch nur für den Fall, dass die Zusammenfassung irreführend,
unrichtig oder widersprüchlich ist, wenn sie zusammen mit anderen Teilen des Prospekts gelesen wird.
Zusammenfassung in Bezug auf die Schuldverschreibungen
Worte und Begriffe, die in den an anderer Stelle in dem Prospekt wiedergegebenen Anleihebedingungen
definiert sind, haben in der Zusammenfassung dieselbe Bedeutung.
Der endgültige Ausgabepreis, der Gesamtnennbetrag, der Zinssatz, der Emissionserlös und die Rendite
der Emission werden in der Preisfestsetzungsmitteilung enthalten sein (wie in "SUBSCRIPTION, SALE
AND OFFER OF THE NOTES" definiert), die auf der Internetseite der Luxemburger Wertpapierbörse
(www.bourse.lu) am oder vor dem Tag der Begebung der Schuldverschreibungen veröffentlicht wird.
Emittentin: Otto (GmbH & Co KG)
Konsortialführer: Raiffeisen Bank International AG
Co-Konsortialführer: Berenberg Bank - Niederlassung Wien
Raiffeisen-Landesbank Steiermark AG
Raiffeisenverband Salzburg
Sparkasse Oberösterreich
Zahlstelle: Raiffeisen Bank International AG
Nennbetrag: € [●]
Angebot der
Schuldverschreibungen,
Festsetzung des
Gesamtnennbetrags,
Emissionspreises,
Zinssatzes und weitere
Informationen (Pricing
Notice)
Die Schuldverschreibungen werden innerhalb eines Bookbuilding-
Verfahrens an institutionelle Investoren angeboten, das voraussichtlich am
20 März 2012 beginnt und voraussichtlich bis zum 21. März 2012 dauern
wird.
Der endgültige Emissionspreis, der Re-Offer Kurs (der dem Ausgabepreis
abzüglich einer Verkaufsprovision von 1,5 Prozentpunkten entspricht), der
Gesamtnennbetrag der zu begebenden Schuldverschreibungen, der
Zinssatz, der Emissionserlös und die Rendite der Emission werden in der
Preismitteilung (Pricing Notice) enthalten sein (nachstehend unter "Offer,
Sale and Subscription of the Notes" definiert), die auf der Internetseite der
Luxemburger Wertpapierbörse (www.bourse.lu) am oder vor dem Tag der
Begebung der Schuldverschreibungen veröffentlicht wird.
Die Schuldverschreibungen werden innerhalb einer Zeichnungsfrist, die
voraussichtlich am 22. März 2012 beginnt und voraussichtlich bis zum
26. März 2012 dauern wird (die "Zeichnungsfrist"), an institutionelle
Investoren und an Privatanleger zum Ausgabepreis angeboten.
Das Angebot unterliegt keinen Bedingungen. Während der Zeichnungsfrist
13
können Anleger ein Angebot zum Kauf der Schuldverschreibungen durch
Nutzung des Informationssystems Bloomberg oder eines anderen
üblicherweise verwendeten Informationssystems oder nach
Veröffentlichung der Pricing Notice über Bankinstitutionen in Luxemburg,
Deutschland und Österreich übermitteln. Jeder Anleger, der ein Angebot
bezüglich der Schuldverschreibungen abgegeben hat und dessen Angebot
angenommen wurde, erhält bezüglich der Zuteilung der
Schuldverschreibungen eine Bestätigung per E-Mail, Fax oder über ein
anderes üblicherweise verwendetes Informationssystem.
Lieferung und Zahlung der Schuldverschreibungen erfolgen innerhalb von
sieben Werktagen nach dem Tag der Preisfestsetzung der
Schuldverschreibungen und der Bestätigung der Zuteilung an den Anleger.
Die Schuldverschreibungen werden durch Buchungseintrag über das
Clearing System und deren kontoführenden Banken gegen Zahlung des
Ausgabepreises übertragen.
Ausgabepreis: [●] %
Begebungstag: 29. März 2012
Stückelung: Die Schuldverschreibungen werden im Nennbetrag von je € 1.000 begeben.
Form der Schuldverschrei-
bungen:
Die Schuldverschreibungen lauten auf den Inhaber und werden durch eine
veränderbare Globalurkunde (die "Globalurkunde") ohne Zinsscheine
verbrieft, welche von oder im Namen der Wertpapiersammelbank der
Oesterreichische Kontrollbank Aktiengesellschaft verwahrt wird. Es werden
keine Einzelurkunden und keine Zinsscheine begeben.
Zinsen: Die Schuldverschreibungen werden vom 29. März 2012 (einschließlich) bis
zum 29. September 2017 (ausschließlich), mit einem Zinssatz von [●] % per
annum verzinst. Die Zinsen sind jährlich nachträglich am 29. September
eines jeden Jahres zahlbar. Die erste Zinszahlung erfolgt am 29. September
2012 (erster kurzer Kupon).
Steuern: Kapital und Zinsen sind ohne Einbehalt oder Abzug von oder aufgrund von
gegenwärtigen oder zukünftigen Steuern oder sonstigen Abgaben gleich
welcher Art zu leisten, die von oder in der Bundesrepublik Deutschland oder
für deren Rechnung oder von oder für Rechnung einer politischen
Untergliederung oder Steuerbehörde auferlegt oder erhoben werden (die
"Quellensteuer"), es sei denn, ein solcher Einbehalt oder Abzug ist
gesetzlich vorgeschrieben. In einem solchen Fall, wird die Emittentin,
vorbehaltlich der in den Anleihebedingungen festgelegten Ausnahmen,
diejenigen zusätzlichen Beträge zahlen, die erforderlich sind, damit die den
Gläubigern von Schuldverschreibungen zufließenden Nettobeträge nach
diesem Einbehalt oder Abzug jeweils den Beträgen an Kapital und Zinsen
entsprechen, die ohne einen solchen Einbehalt oder Abzug bezüglich der
Schuldverschreibungen empfangen worden wären.
Fälligkeit: Die Schuldverschreibungen werden am 29. September 2017 zum
Nennbetrag zurückbezahlt.
Vorzeitige Rückzahlung
aus steuerlichen Gründen:
Die vorzeitige Rückzahlung der Schuldverschreibungen aus steuerlichen
Gründen ist zulässig, falls als Folge einer Änderung oder Ergänzung der
Steuer- oder Abgabengesetze oder Vorschriften (einschließlich jeder
Änderung oder Ergänzung der Anwendung oder der offiziellen Auslegung
dieser Gesetze oder Vorschriften) der Bundesrepublik Deutschland oder
14
deren politischen Untergliederungen oder Steuerbehörden, die Emittentin
zur Zahlung zusätzlicher Beträge auf die Schuldverschreibungen verpflichtet
ist, wie im Einzelnen in den Anleihebedingungen dargelegt.
Vorzeitige Rückzahlung
aufgrund eines
Kontrollwechsels:
Wenn ein Kontrollwechsel eingetreten ist, kann die Emittentin entweder (i)
von Moody's Investors Services Limited ("Moody's") oder Standard & Poor's
Rating Services, a division of The McGraw-Hill Companies Inc. ("S&P")
(oder einer jeweiligen Nachfolgegesellschaft) innerhalb von 6 Monaten nach
dem Kontrollwechsel mindestens ein Investment Grade Rating für die
Schuldverschreibungen einholen; oder (ii) die Schuldverschreibungen
insgesamt, und nicht teilweise, zum Nennbetrag zurückzahlen.
Hat die Emittentin mitgeteilt, ein Investment Grade Rating für die
Schuldverschreibungen beantragen zu wollen, und wird ein solches Rating
nicht innerhalb von sechs Monaten nach Eintritt des Kontrollwechsels erteilt,
so hat die Emittentin unverzüglich einen Rückzahlungstermin für die
Schuldverschreibungen bekanntzumachen, der auf einen Tag frühestens
zehn und höchstens zwanzig Tage nach Veröffentlichung der Mitteilung
festzusetzen ist.
Ein "Kontrollwechsel" tritt ein, wenn eine oder mehrere Personen, die am
Begebungstag nicht Gesellschafter der Emittentin oder ihrer
Komplementärin waren und die abgestimmt in Sinne von § 22 Absatz 2
Wertpapierhandelsgesetz (WpHG) handeln, oder einer oder mehrere Dritte,
die im Auftrag einer solchen Person oder Personen handeln, zu irgendeiner
Zeit mittelbar oder unmittelbar (i) mehr als 50 % des Kommanditkapitals der
Emittentin oder mehr als 50 % des Stammkapitals ihrer Komplementärin,
oder (ii) eine solche Anzahl von Anteilen am Kommanditkapital der
Emittentin oder Stammkapital ihrer Komplementären erworben hat, auf die
mehr als 50 % der bei jeweiligen Gesellschafterversammlungen der
Emittentin oder ihrer Komplementären stimmberechtigten Stimmrechte
entfallen.
Status der
Schuldverschreibungen:
Die Schuldverschreibungen begründen unmittelbare, unbedingte, nicht
besicherte und nicht nachrangige Verbindlichkeiten der Emittentin, die
untereinander und mit allen gegenwärtigen und zukünftigen anderen nicht
besicherten und nicht nachrangigen Verbindlichkeiten der Emittentin
gleichrangig sind, soweit diesen Verbindlichkeiten nicht durch zwingende
gesetzliche Bestimmungen ein Vorrang eingeräumt wird.
Negativverpflichtung: In den Anleihebedingungen stimmt die Emittentin zu, keine Sicherheiten (mit
Ausnahme zugelassener Sicherheiten) zur Besicherung von
Kapitalmarktverbindlichkeiten (wie in § 2 der Anleihebedingungen definiert)
und Verbindlichkeiten aus bestimmten Asset-backed
Schuldverschreibungen (wie in § 2 (2) definiert) zu gewähren und dies auch
für ihre Wesentlichen Tochtergesellschaften sicherzustellen.
Kündigungsgründe: Die Schuldverschreibungen sehen Kündigungsgründe vor, die die Gläubiger
berechtigen, die unverzügliche Rückzahlung der Schuldverschreibungen zu
verlangen, wie im Einzelnen in den Anleihebedingungen dargelegt.
Cross Default: Die Anleihebedingungen enthalten eine Cross-Default-Klausel
(Drittverzugsklausel) in Bezug auf Nichtzahlung von
Zahlungsverpflichtungen, die aus Kapitalmarktverbindlichkeiten (wie in § 2
der Anleihebedingungen definiert) resultieren, von mehr als € 10.000.000.
15
Gesetz über
Schuldverschreibungen
aus Gesamtemissionen
(Schuldverschreibungs-
gesetz)
Die Schuldverschreibungen unterliegen dem Gesetz über
Schuldverschreibungen aus Gesamtemissionen
("Schuldverschreibungsgesetz" oder "SchVG"), welches unter anderem
die Möglichkeit der Emittentin bzw. der Garantin vorsieht, mit Zustimmung
durch Mehrheitsentscheidung der Anleihegläubiger die Anleihebedingungen
zu ändern und einen gemeinsamen Vertreter zur Wahrnehmung ihrer
Rechte zu ernennen.
Anwendbares Recht: Die Schuldverschreibungen unterliegen deutschem Recht.
Gerichtsstand: Nicht ausschließlicher Gerichtsstand für alle gerichtlichen Verfahren im
Zusammenhang mit den Schuldverschreibungen ist Hamburg.
Börsenzulassung und
Notierung:
Für die Schuldverschreibungen wird die Zulassung zum Handel im Dritten
Markt – MTF der Wiener Börse AG beantragt.
Verkaufsbeschränkungen: Das Angebot und der Verkauf von Schuldverschreibungen sowie die
Verteilung von Angebotsmaterialien unterliegen regulatorischen
Beschränkungen. Die in der Europäischen Union, den Vereinigten Staaten
von Amerika und dem Vereinigten Königreich von Großbritannien und
Nordirland geltenden Beschränkungen sind unter "SELLING
RESTRICTIONS" dargestellt.
Abwicklung und
Settlement:
Die Abwicklung der Schuldverschreibungen erfolgt durch die
Wertpapiersammelbank der Oesterreichische Kontrollbank
Aktiengesellschaft.
Wertpapiernummern ISIN: AT0000A0UJL6
Common Code: 076135851
WKN: A1ML0L
Verfügbarkeit von
Dokumenten
Dieser Prospekt und die hierin einbezogenen Dokumente können auf der
Internetseite der Luxemburger Wertpapierbörse (www.bourse.lu) abgerufen
werden oder sind in gedruckter Form unter der Adresse der Zahlstelle in
Österreich, Raiffeisen Bank International AG, Am Stadtpark 9, 1030 Wien,
Österreich erhältlich.
16
Zusammenfassung in Bezug auf die Emittentin und die Otto Group
Die Emittentin wurde am 17. August 1949 als Einzelunternehmen Werner Otto, Schuh-Versand
gegründet. In ihrer heutigen Rechtsform besteht die Otto (GmbH & Co KG) seit dem 8. Oktober 2002
und ist im Handelsregister des Amtsgerichts Hamburg unter HRA 62024 eingetragen. Der Hauptsitz der
Emittentin ist in der Wandsbeker Straße 3-7, 22172 Hamburg, Deutschland, ihre Telefonnummer ist
+49 40 64 61 – 0. Die Otto (GmbH & Co KG) ist die Muttergesellschaft der Otto Group und hält direkt
oder indirekt alle Beteiligungen an den Tochtergesellschaften der Otto Group. Darüber hinaus ist die
Emittentin auch als operative Gesellschaft in dem Geschäftsfeld Multichannel-Einzelhandel aktiv. Die
Emittentin verkauft Waren über die drei Vertriebswege Katalog, Internet und den stationären
Einzelhandel. Die Emittentin befindet sich mit über 98 % im mittelbaren Besitz der Familie Otto.
Das Geschäftsjahr der Emittentin und der Otto Group beginnt am 1. März eines jeden Jahres und endet
am 28./29. Februar des darauf folgenden Jahres.
Die Otto Group beschäftigt weltweit rund 50.000 Mitarbeiter (per Februar 2011) und ist mit 123
operativen, wesentlichen Gesellschaften in 20 Ländern in Europa, Asien und Nordamerika präsent. Im
Geschäftsjahr 2010/11 wurden etwa 42 % des Umsatzes außerhalb Deutschlands erwirtschaftet. Die
Otto Group ist in den Geschäftsfeldern Multichannel-Einzelhandel, Finanzdienstleistungen und Service
aktiv. Im Onlinehandel mit dem Endverbraucher (B2C) sieht sich die Otto Group weltweit auf Platz 2
hinter Amazon.
Der Umsatz der Otto Group belief sich im Geschäftsjahr 2010/11 (zum 28. Februar 2011) auf
EUR 11.404 Mio.
Im Segment Multichannel-Einzelhandel werden in- und ausländische Gesellschaften zusammengefasst,
die ihre Waren über Katalog, E-Commerce oder Stationärgeschäfte anbieten. Die Marktposition von Otto
basiert auf verschiedenen Unternehmensmarken. In Deutschland sind neben OTTO vor allem Schwab,
Heine, Bonprix und Baur bekannt, aber auch Sportscheck, Manufactum, Frankonia und mytoys.
International ist Otto vor allem in Frankreich durch die 3 Suisses International-Gruppe, in den USA durch
Crate and Barrel, in Großbritannien durch Grattan and Freemans, in Japan durch Otto Japan und auch in
Russland mit einer Vielfalt von Produkten und unterschiedlichen Marken vertreten.
Das Segment Finanzdienstleistungen umfasst das konzernweite Angebot an internationalen
Finanzservices der Otto Group. Den Schwerpunkt bilden handelsnahe Produkte wie
Konsumentenkredite oder Liquiditätsmanagement. Umsatzstärkstes Unternehmen im Segment ist die
international aufgestellte EOS Gruppe. Sie ist mit 40 operativen Gesellschaften in mehr als 20 Ländern
für 20.000 Kunden aktiv. Die Hanseatic Bank, die ebenfalls zum Segment Finanzdienstleistungen gehört,
wurde 1969 als Teilzahlungsbank gegründet, um das Warenfinanzierungsgeschäft für Kunden des Otto
Versands abzuwickeln. 2005 übernahm die französische Großbank Société Générale im Rahmen einer
langfristigen Kooperation 75 Prozent der Anteile, die Otto Group hält die restlichen 25 Prozent. Die Otto
Group ist direkt und indirekt über die Beteiligungsgesellschaft 3 Suisses International mit 57 Prozent an
Cofidis beteiligt, bei der die französische Genossenschaftsbank Crédit Mutuel seit 2009 die
Beherrschung innehat.
Das Segment Service umfasst die Logistik- und Reisedienstleiter sowie die Einkaufsgesellschaften der
Otto Group. Unter der Dachmarke Hermes sind die Aktivitäten der Hermes-Logistikaktivitäten gebündelt.
Als weltweiter Enabler eines kompletten Handels-Dienstleistungsportfolios können Hermeskunden
handelsnahe Services entlang der gesamten Wertschöpfungskette beziehen. Die Logistik-Dienstleister
bieten dabei ihren Service nicht nur den Gesellschaften der Otto Group, sondern mit u.a. QVC,
Hennes&Mauritz, Deutsche Bahn, Lands End, und Tom Tailor verstärkt auch weiteren namhaften
Unternehmen in Europa an. Mit rund 14.000 Paketshops verfügt die Hermes Logistik Gruppe in
Deutschland auf Basis eigener Analysen über das bundesweit größte Filialnetz für die Annahme von
17
privaten Paketen. Mit Wirkung zum 1. Januar 2012 hat die Otto Group 49 Prozent ihrer Anteile an der
Holding Otto Freizeit und Touristik (OFT) an die VR meine Raiffeisenbank Altötting-Mühldorf verkauft, so
dass die OFT entkonsolidiert wurde. Die Aktivitäten der OFT gehören nicht zum Kerngeschäft der Otto
Group.
Der Vorstand der Otto Group besteht aus acht Mitgliedern. Vorsitzender des Vorstandes (CEO) ist Hans-
Otto Schrader, zuständig für den Bereich Finanzen (CFO) ist Jürgen Schulte-Laggenbeck.
Die Emittentin hat die KPMG AG Wirtschaftsprüfungsgesellschaft, Michaelis Quartier, Ludwig-Erhard-
Straße 11-17, 20459 Hamburg zum Wirtschaftsprüfer bestellt.
Die nachfolgende Tabelle zeigt wesentliche konsolidierte Finanzinformationen:
1. März –30.
November
2011
(ungeprüft)
1. März –30.
November
2010
(ungeprüft)
Geschäfts-
jahresende
2010/11
(geprüft)
Geschäfts-
jahresende
2009/10
(geprüft)
(in Tausend EUR)
Umsatzerlöse...................................................... 8.554.004 8.346.271 11.403.913 10.132.044
EBITDA............................................................... 482.583 574.553 666.719 326.560
EBIT................................................................ 308.401 400.839 377.521 46.216
EBT................................................................ 156.237 221.345 256.515 -133.096
Brutto Cashflow .................................................. 456.871 576.323 693.180 414.759
30. November
2011
30. November
2010
28 Februar
2011
28 Februar
2010
Eigenkapital ........................................................ 2.074.588 2.083.524 2.080.514 2.036.207
Bilanzsumme ...................................................... 7.668.602 7.691.616 7.717.543 7.498.282
Netto-Finanzverschuldung (inkl. Pensions-
rückstellungen) ...................................................... 2.473.039 2.339.506 2.392.821 1.931.955
18
Die nachfolgende Tabelle zeigt wesentliche konsolidierte Finanzinformationen unter der Einbeziehung
des Segments Finanzdienstleistungen nach der Equity-Methode:
1. März –30.
November
2011
(ungeprüft)
1. März –30.
November
2010
(ungeprüft)
Geschäfts-
jahresende
2010/11
(geprüft)
Geschäfts-
jahresende
2009/10
(geprüft)
(in Tausend EUR)
Umsatzerlöse...................................................... 8.161.185 8.005.917 10.950.339 9.745.017
EBITDA............................................................... 434.257 528.035 696.733 304.345
EBIT................................................................ 270.872 363.391 420.299 34.520
EBT................................................................ 136.706 198.117 228.286 216.951
Brutto Cashflow .................................................. 531.562 501.991 583.079 1.011.079
30. November
2011
30. November
2010
28. Februar
2011
28. Februar
2010
Eigenkapital ........................................................ 2.010.314 2.018.808 2.014.846 1.970.785
Bilanzsumme ...................................................... 7.298.255 7.279.997 7.346.606 7.142.234
Netto-Finanzverschuldung (inkl. Pensions-
rückstellungen) ...................................................... 2.019.842 1.891.492 1.930.790 1.454.132
Zusammenfassung in Bezug auf die Risikofaktoren
Die Emittentin betreffend
Die Emittentin ist die Holdinggesellschaft der Otto Group, eines international agierenden Handels- und
Dienstleistungskonzerns. Die Otto Group ist in die drei Segmente Multichannel-Einzelhandel als
Kerngeschäft, sowie Finanzdienstleistungen und Service, welches hauptsächlich Logistik- und
Reisedienstleistungen umfasst, eingeteilt.
Die Aktivität in diesen Geschäftsbereichen ist mit verschiedenen Risiken verbunden. Zum einen
bestehen Risiken bezüglich wirtschaftlicher und saisonabhängiger Trends. Die Verbraucher könnten ihre
Konsumausgaben aufgrund der Fortsetzung oder weiterer Verschlechterung der gegenwärtigen
negativen gesamtwirtschaftlichen Entwicklung reduzieren. Darüber hinaus bestehen Risiken aufgrund
des starken Wettbewerbs im Einzelhandel, aufgrund des wechselnden Geschmacks der Kunden und
Modetrends, möglicher Zahlungsschwierigkeiten der Kunden, Verzug der Schuldner, Währungs- und
Wechselkursrisiken, Risiken im Zusammenhang mit der Funktionsfähigkeit der logistischen Systeme,
Risiken aus dem Ausfall von IT- und Kommunikationseinrichtungen (insbesondere in Call-Centern),
Risiken aus der Abhängigkeit von Management und Mitarbeitern, Risiken aus Fusionen und
Unternehmenskäufen, Risiken im Zusammenhang mit der Fremdkapitalfinanzierung, steuerrechtliche
Risiken, Risiken aufgrund der Solvenz von Lieferanten, Risiken aus der internationalen Beschaffung von
Waren und Risikofaktoren aus den Arbeitsbedingungen der Lieferanten. Diese Risiken könnten die
Vermögens-, Finanz- und Ertragslage der Emittentin derart beeinflussen, dass die Emittentin ihren
Verpflichtungen aus der Anleihe nicht nachkommen kann.
19
Die Schuldverschreibungen betreffend
Die Anlage in den Schuldverschreibungen ist mit bestimmten Risiken, welche in Zusammenhang mit den
Eigenschaften, Bedingungen und der Art der Schuldverschreibungen stehen, verbunden. Diese Risiken
können zu substanziellen Verlusten führen, welche der Gläubiger beim Verkauf der
Schuldverschreibungen oder bezüglich des Erhalts von Zinszahlungen und der Rückzahlung des
Kapitals zu tragen hat. Die Risiken bezüglich der Schuldverschreibungen beinhalten, inter alia, die
folgenden Risiken: Risiko, dass die Schuldverschreibungen kein geeignetes Investment für bestimmte
Investoren sind; Liquiditätsrisiko; Risiko der vorzeitigen Rückzahlung; Marktpreisrisiko; Risiko, dass der
Marktwert der Schuldverschreibungen sinken kann, wenn sich die Kreditwürdigkeit der Otto Group
verschlechtert; Währungsrisiko, Risiko aus der Anwendung des Schuldverschreibungsgesetzes 2009,
das Risiko, dass der Wert der Schuldverschreibungen als Folge der Änderung des Marktzinssatzes sinkt,
Risiken im Zusammenhang mit der Negativverpflichtung und ABS Transaktionen sowie Risiken im
Zusammenhang mit der Negativverpflichtung und Verbindlichkeiten, die nicht unter die Definition von
Kapitalmarktverbindlichkeiten fallen.
20
RISK FACTORS
The below description relates to risk factors that are material for the assessment of the market risk
associated with the Notes and risk factors that may affect the Issuer's ability to fulfill its obligations under
the Notes. Any of these risks could have a material adverse effect on the financial condition and results
of operations of the Issuer. The market price of the Notes could decline due to the materialisation of any
of these risks, and investors could lose all or part of their investments.
Prospective investors should consider all information provided in this Prospectus and consult with their
own professional advisers (including their financial, accounting, legal and tax advisers) if they consider it
necessary before making a decision to acquire the Notes. In addition, investors should be aware that the
risks described may combine and thus intensify one another.
The Issuer believes that the factors described below represent the principal risks inherent in investing in
the Notes, but the inability of the Issuer to pay interest, principal or other amounts on or in connection
with the Notes may occur for other reasons than those described below and the Issuer does not
represent that the statements below are exhaustive. Potential investors should also read the detailed
information set out elsewhere in this Prospectus and reach their own views prior to making any
investment decision. The sequence in which the risk factors are presented below is not indicative of their
likelihood of occurrence or the scope of their financial consequences.
Words and expressions defined in the "Conditions of Issue" shall have the same meanings in this
section "Risk Factors".
Risk Factors relating to the Issuer
Before deciding upon the purchase of the Notes potential investors should in addition to all other
information in this Prospectus carefully consider the specific risk factors outlined below that may affect
the capacity of the Issuer to fulfill its obligations under the Notes and consult with their own professional
advisers if they deem it necessary.
Risks in general
Some statements refer to the future and contain forecasts which are exposed to special risks and
uncertainties. It cannot be excluded that there are further risks which are not known to the Issuer or that
are not considered as substantial at present. The materialisation of these risks could have a material
adverse effect on the financial situation of the Issuer. The following is a non-exhaustive description of
certain risk factors. The Issuer has the view that the risk factors mentioned below represent the
substantial risks connected with an investment in the Notes. The sequence in which the following risk
factors are listed is not an indication of their likelihood to occur or of the extent of their commercial
consequences.
Risk factors in respect of market and competition
Intensive competition in the retail sector could have a material adverse effect on the financial condition
and results of operations of the Issuer. A decreased level of economic activity could lead to deterioration
in consumer spending and therefore have a material adverse effect on the Otto Group's financial
condition and result of operations. The Issuer will tap new markets which could lead to high expenditures
for market development, market launch and market penetration. The market objectives connected with
the business expansion may not be achieved.
It cannot be excluded that the business model of the Issuer and/or of its subsidiaries which contribute
considerably to the Otto Group's results of operations will be partly or completely copied by existing or
future competitors. Should competition intensify in the market segments, then a decrease in profit
21
margins cannot be excluded. In the worst case the Issuer and/or its subsidiaries could be forced out of
the market.
The global financial crisis has exerted pressure on the payment history of debtors in the financial
services sector, with banks intensifying checks of creditworthiness criteria before granting loans.
Consequently, there has been an increase in demand for services in receivables management. This
leads to future potential growth for financial services companies, which would in turn increase the
importance of the management of these financial services-related risks for the Otto Group.
Changing Customer Taste and Fashion Trends
Although the Otto Group offers a wide range of products in its Retail segment, a significant portion of
sales is exposed to the risk of constantly changing customer tastes and fashion trends. Should
assortments fail to appeal to customers' taste, or only do so in part, this would lead to declining sales and
a write down of the inventory, and would have a material adverse effect on the Otto Group's financial
condition and results of operations.
Defaults by Customers in respect of their Payment Obligations
As a result of its installment sale operations, especially in the mail-order activities, the Otto Group has a
substantial volume of trade receivables. The risk of non-payment under these receivables depends on
the creditworthiness of the customers and ultimately on the macroeconomic situation, in particular within
the European Union. Should the risk measurement and risk control systems which Otto Group has
employed turn out to be insufficient for any reason, this could have a material adverse effect on Otto
Group's financial condition and results of operations.
Borrower Default Risk
The Otto Group extends loans to third parties, primarily by providing consumer loans to private
individuals. The borrowers may default on their obligations to the Otto Group due to bankruptcy, lack of
liquidity, downturns in the economy, or for other reasons. Any such default could have a material adverse
effect on the Otto Group's financial condition and results of operations.
Fluctuations in Currency Exchange Rates
The Issuer has subsidiaries which are not located in the Euro-zone. Furthermore, as a result of its global
sourcing and selling activities, the Otto Group is affected by the developments of financial markets, e.g.
Fluctuations in currency exchange rates. Within the Otto Group financial instruments are used to hedge
the exposure to foreign currency fluctuations. However, to the extent that such financial instruments are
not sufficient or not effective, fluctuations of local currencies against the Euro therefore affect the Otto
Group's financial condition, revenues and results of operations.
Additionally, many goods are purchased outside of the Euro zone so that fluctuations in currency
exchange rates could affect the Otto Group's results of operations.
Risk factors in respect of management and employees
Otto Group's business success depends considerably on the quality of its employees. A loss of important
employees could have a material adverse effect on the Otto Group's financial condition and results of
operations. It could be the case that within an appropriate period no qualified personnel can be found for
the seamless continuation of the business. This could also have a material adverse effect on the Otto
Group's financial condition and results of operations.
Efficiency of logistical system
Since logistics are crucial to the Otto Group's business, highly advanced processes and systems are
employed for everything from merchandise pickup and goods movement to intelligent route planning for
the Group's own parcel services providers. Based on long years of experience in logistics services, the
22
Group maintains resources that are able to cope even with seasonal peaks. However, as this logistics
network is highly sophisticated it is also vulnerable to external shocks not under control of the Issuer. The
Otto Group invests substantially in high performance warehousing and logistic technologies. Therefore
there is a potential risk of an insufficient return of the investments in the up-to-date fulfillment facilities
due to lacking sales volumes.
IT-Risk
The increased use of information technology, including for confidential business processes, increases
the risk of unauthorised access and fraud. The Otto Group minimises these IT-related risks with
extensive security concepts, supported by a Group directive on IT security. The Group's key business
processes are handled in a homogeneous system environment. Its IT systems are constantly being
updated and adapted to new standards and requirements. Apart from instituting rules for using
information systems, the Group also takes extensive technical precautions, such as installing firewall
systems, virus scanners and access controls at both the operating system and the application level.
Otto Group uses information technology intensively in critical business processes. Despite extensive
measures for data protection and the bypass of system losses, operational faults cannot be excluded.
This could lead to data losses and false pricing information being implemented. Moreover, lack of data
availability, operational problems of the assigned software, a decreased data transfer rate and/or server
losses could occur due to soft and hardware errors, accident, sabotage or other reasons. It can also not
be excluded that despite appropriate provisions the telephone system which is crucial for the daily
business does not operate efficiently.
This could result in a substantial reputational damage or market disadvantages for the Otto Group and/or
its subsidiaries, to turnover losses as well as affect the operational business and its customer relations.
This could have a material adverse effect on Otto Group's financial condition and results of operations.
Risk factors in respect of mergers and acquisitions
Apart from organic growth Otto Group aims to explore additional opportunities in terms of acquisitions
and market entries. Each acquisition bears substantial risks as the assumptions for the purchase price
determination regarding profitability and synergy potentials may not prove correct. It cannot be excluded
that an investment will not generate the expected returns or will be a total loss. This risk increases with
increasing size and/or complexity of the acquisition target or market entry.
Where necessary, strategic partnerships will be entered into to ensure success. However, the Issuer
cannot guarantee that it is able to find and successfully form such partnerships. With respect to
marketing and risk information, risks result from changes in the legal environment in Germany, the
European Union and the United Stated (among others new privacy terms).
Risk factors in respect of debt and other financial risks
The Otto Group's worldwide setup exposes it to a number of financial risks. Counterparty credit risk,
liquidity risk, interest rate risk and market risk are of particular importance for the Otto Group.
Counterparty credit risk refers to the risk of a borrower or counterparty defaulting or partly defaulting on
liabilities due to a deterioration in its financial situation. The liquidity risk refers to the risk inherent in a
company not having sufficient funds to meet its payment obligations, or when the liquidity required
cannot be obtained at anticipated conditions.
Regarding its debt financing, the Otto Group depends on the economic environment, in particular on the
national and international bank and capital markets. These markets are affected by several factors like
for example stock exchange trends, market expectations and international conflicts which cannot be
influenced by the Issuer. Given the changes in the banking sector as a whole, banks have and may
continue to change their financing policies. It cannot be excluded that banks or financial services
23
institutions will apply in future a more restrictive lending policy. Should the envisaged financial planning
prove inadequate a refinancing risk might arise and have a significant negative impact on the financial
position of Otto Group. Potential risks arising out of refinancing requirements for maturing financial
liabilities have to be accounted for. This may increase the financing costs for the Otto Group.
In addition to credit lines granted by banks, the Issuer has a variety of funding instruments consisting of,
amongst others, subordinated securities issued by Otto Finance Luxembourg A.G. for which Otto has
issued an irrevocable guarantee, and asset backed securities.
Considerable expenses accrue each year for the payment of interest and other costs relating to the
Issuer's various sources of funding. In case of the subordinated securities the interest expense might
increase subject to the conditions of the notes. These material costs affect the liquidity and profitability of
the Issuer. In case of an increase in interest rates or the other costs of financing or if the availability of
financings is affected, this could have a material adverse effect on the financial condition of Otto.
Tax risk
The tax statements (corporation tax, trade tax and value-added tax) of the years 2005-2009 are still
subject to the reservation of the reexamination (Betriebsprüfung) by the competent tax authorities, tax
statements for the years 2010 and 2011 are not present.
The Issuer believes that the tax returns of the Issuer and its subsidiaries are prepared in agreement with
the relevant fiscal regulations. If the tax authority has different legal opinions to particular issues this
could lead to additional tax claims which would have a material adverse effect on the Otto Group's
financial condition and results of operations.
Existing insurance coverage may turn to be inadequate
The Otto Group seeks to cover foreseeable risks through insurance coverage. Such insurance cover,
however, may not fully cover the risks to which the companies are exposed. This can be the case with
insurance covering legal and administrative claims, as well as with respect to insurance covering other
risks. For certain risks, adequate insurance coverage may not be available on the market or may not be
available at reasonable conditions. Consequently, any harm resulting from the materialisation of these
risks could result in significant capital expenditures and expenses as well as liabilities, thereby harming
business and operating results.
Solvency of suppliers
As a retailer the Issuer depends on its external suppliers. In the current economic environment there is
increased risk of insolvency in the supply chain, which in turn could lead to restrictions in the
deliverability of goods.
International procurement of goods
Otto Group is subject to risks associated with the international procurement of goods. Otto Group
purchases a considerable quantity of its goods in Asia (primarily in China and Hong Kong/Macao).
A significant risk in 2011 surrounds the increase in purchase prices (particularly in cotton prices and
freight costs). Purchase prices can rise, particularly due to more expensive raw materials. Otto Group
may not be able to pass on increases in the price of raw materials to its customers by correspondingly
increasing the price of products sold to its customers.
Economic, political or social instability in the regions in which the Otto Group sources its goods, import or
export restrictions as well as adverse trade tariffs may have a detrimental effect on the Otto Group's
operations. In the logistics segment, there is a risk of increased transport costs and higher fuel prices.
Any of the aforementioned events could have a material adverse effect on the Otto Group's financial
condition and results of operations.
24
Working conditions of suppliers
The Otto Group does not have its own production and purchases the products marketed by it directly
from manufacturers and/or trade companies. Several of these manufacturers are based in countries
where working and environmental conditions as well as social standards are inconsistent with Western
European or generally recognised international standards. The Otto Group has committed itself to
environmentally sustainable and socially responsible practices and endeavors to commit its suppliers to
comply therewith. However, the Otto Group cannot guarantee that its suppliers will always comply with
these standards in practice. Should one of the independent manufacturers not comply with the relevant
labor law provisions or should they be in breach of generally recognised environmental or social
international standards, this could be detrimental to the Otto Group's image and consequently have a
material adverse effect on Otto Group's financial condition and results of operations.
Arianta S.A.S.
Otto Group has been subject to one-off items during the fiscal year 2011/12. Amongst these items, the
developments at Arianta S.A.S., a French subsidiary of "3 Suisses International" have the most
significant effect. The decision to close Arianta S.A.S. was made in early 2012 resulting in a negative
impact on profits of approximately EUR 55 - 65 million including restructuring and closure provisions.
Risk Factors relating to the Notes
An investment in the Notes involves certain risks associated with the characteristics, specification and
type of the Notes which could lead to substantial losses that Holders would have to bear in the case of
selling their Notes or with regard to receiving interest payments and repayment of principal. Risks
regarding the Notes comprise, inter alia, the following risks:
Notes may not be a suitable investment for all investors
Each potential investor in the Notes must determine the suitability of that investment in light of its own
circumstances. In particular, each potential investor should:
(i) Have sufficient knowledge and experience to make a meaningful evaluation of the Notes, the
merits and risks of investing in the Notes and the information contained or incorporated by
reference in this Prospectus;
(ii) Have access to, and knowledge of, appropriate analytical tools to evaluate, in the context of its
particular financial situation and the investment(s) it is considering, an investment in the Notes and
the impact the Notes will have on its overall investment portfolio;
(iii) In the Notes, including where principal or interest is payable in one or more currencies, or where
the currency for principal or interest payments is different from the potential investor's currency;
(iv) Understand thoroughly the terms of the Notes and the content of this Prospectus; and
(v) Be able to evaluate (either alone or with the help of a financial adviser) possible scenarios for
economic, interest rate and other factors that may affect its investment and its ability to bear the
applicable risks.
Liquidity Risk
Application will be made to the Vienna Stock Exchange AG for the Notes to be listed on the Third Market
- MTF of Vienna Stock Exchange AG ("Dritter Markt – MTF der Wiener Börse AG") and to be admitted to
trading on the Third Market - MTF of Vienna Stock Exchange AG ("Dritter Markt – MTF der Wiener Börse
AG"). However, there is a risk that no liquid secondary market for the Notes will develop or, if it does
develop, that it will not continue. The fact that the Notes may be listed does not necessarily lead to
greater liquidity as compared to unlisted Notes. In an illiquid market, an investor is subject to the risk that
25
he will not be able to sell his Notes at any time at fair market prices. The possibility to sell the Notes
might additionally be restricted by country specific reasons.
Risk of Early Redemption
The Notes may be redeemed at the option of the Issuer (in whole, but not in part) at the principal amount
of the Notes plus accrued interest to the date fixed for redemption, for reasons of taxation and following a
Change of Control, as more fully described in the Conditions of Issue. In the event that the Issuer
exercises the option to redeem the Notes, the Holders might suffer a lower than expected yield and might
not be able to reinvest the funds on the same terms.
Market Price Risk
The development of market prices of the Notes depends on various factors, such as changes of market
interest rate levels, the policies of central banks, overall economic developments, inflation rates or the
lack of or excess demand for the Notes. The Holders are therefore exposed to the risk of an
unfavourable development of market prices of their Notes which materialise if the Holders sell the Notes
prior to the final maturity. If a Holder decides to hold the Notes until final maturity, the Notes will be
redeemed at the amount set out in the Conditions of Issue.
EU might impose a financial transaction tax
The European Commission has published on 28 September 2011 the Proposal for a Council Directive on
a common system of financial transaction tax and amending Directive 2008/7/EC. Should the European
Council adopt such proposal and should such financial transaction tax being implemented, Holders in EU
member states will be exposed to increased transaction costs.
The market value of the Notes could decrease if the creditworthiness of the Otto Group
worsens
If, e.g., because of the materialisation of any of the risks regarding the Issuer, the likelihood that the
Issuer will be in a position to fully perform all obligations under the Notes when they fall due decreases,
the market value of the Notes will suffer. In addition, even if the likelihood that the Issuer will be in
position to fully perform all obligations under the Notes when they fall due actually has not decreased,
market participants could nevertheless have a different perception. In addition, the market participants'
estimation of the creditworthiness of corporate debtors in general or debtors operating in the same
business as the Otto Group could adversely change.
If any of these risks occurs, third parties would only be willing to purchase Notes for a lower price than
before the materialisation of said risk. Under these circumstances, the market value of the Notes will
decrease.
Currency risk
The Notes are denominated in Euro. If such currency represents a foreign currency to a Holder, such
Holder is particularly exposed to the risk of changes in currency exchange rates which may affect the
yield of such Notes in the currency of the Holder. Changes in currency exchange rates result from
various factors such as macro-economic factors, speculative transactions and interventions by central
banks and governments.
In addition, government and monetary authorities may impose (as some have done in the past)
exchange controls that could adversely affect an applicable currency exchange rate. As a result,
investors may receive less interest or principal than expected, or no interest or principal at all.
Fixed Rate Notes
The Notes bear a fixed interest rate. A Holder of fixed rate Notes is particularly exposed to the risk that
the price of such Notes falls as a result of rising market interest rate. While the nominal interest rate of a
26
fixed rate Note as specified in the Conditions of Issue is fixed during the life of the Notes, the current
interest rate on the capital market typically changes on a daily basis. As the market interest rate
changes, the price of fixed rate Notes also changes, but in the opposite direction. If the market interest
rate increases, the price of fixed rate Notes typically falls, until the yield of such Notes is approximately
equal to the market interest rate of comparable issues. If the market interest rate falls, the price of fixed
rate Notes typically increases, until the yield of such Notes is approximately equal to the market interest
rate of comparable issues. If a Holder of the Notes holds his Notes until maturity, changes in the market
interest rate are without relevance to such Holder as the Notes will be redeemed at the principal amount
of the Notes.
Risks in connection with the application of the Schuldverschreibungsgesetz 2009 (Law on
Debt Securities)
A Holder is subject to the risk to be outvoted and to lose rights towards the Issuer against his will in the
case that Holders agree pursuant to the Conditions of Issue to amendments of the Conditions of Issue by
majority vote according to the Schuldverschreibungsgesetz 2009 (Law on Debt Securities). In the case of
an appointment of a noteholders' representative for all Holders a particular Holder may lose, in whole or
in part, the possibility to enforce and claim his rights against the Issuer regardless of other Holders.
No limitations on issuing further debt
There is no restriction on the amount of debt which the Issuer may issue ranking equal to the obligations
under or in connection with the Notes. Such issuance of further debt may reduce the amount recoverable
by the Holders upon insolvency or winding-up of the Issuer or may increase the likelihood that the Issuer
may or shall defer payments of interest under the Notes.
Negative pledge and potential ABS transactions
§ 2 (2) of the Conditions of Issue sets out the negative pledge of the Issuer under which it undertakes not
to grant any security (other than a Permitted Security) for any existing or future Capital Market
Indebtedness (including any guarantees or indemnities in respect thereof) on the existing or future assets
of the Issuer or any of its Material Subsidiary without at the same time granting to the Holders an equal
and rateable security. However, § 2 (2) of the Conditions of Issue stipulates that this provision shall not
apply to any security that has been or will be granted within the scope of asset-backed securities ("ABS")
transactions of the Issuer or its Material Subsidiaries. Accordingly, assets of the Issuer and its Material
Subsidiaries may be used as security in future ABS transactions of any type, without equal and rateable
security being granted to the Holders. Any such transactions will reduce the amount recoverable by the
Holders upon winding-up or insolvency of the Issuer.
Negative pledge and borrowings not classified as Capital Market Indebtedness
Any borrowings that do not meet the definition of Capital Market Indebtedness (including but not limited
to bank loans) are excluded from the negative pledge. Therefore, in any of these cases the Issuer is
under no obligation to grant the Holders an equal and rateable security. Such transactions may reduce
the amount recoverable by the Holders upon winding-up or insolvency of the Issuer.
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ANLEIHEBEDINGUNGEN / CONDITIONS OF ISSUE
The following is the text of the terms and conditions of the notes (the "Conditions of Issue") applicable to the Notes. The final Conditions of Issue of the Notes will be an integral part of the Global Note.
These Conditions of Issue are written in the German language and provided with an English language translation. The German text shall be the legally binding version. The English language translation is
provided for convenience only.
Nachfolgend ist der Text der Anleihebedingungen (die "Anleihebedingungen") für die Schuldverschreibungen abgedruckt. Die endgültigen Anleihebedingungen für die
Schuldverschreibungen werden Bestandteil der Globalurkunde.
Diese Anleihebedingungen sind in deutscher Sprache abgefasst und mit einer englischen Übersetzung versehen. Der deutsche Wortlaut ist rechtsverbindlich. Die englische Übersetzung dient nur zur
Information.
Anleihebedingungen Conditions of Issue
§ 1WÄHRUNG, STÜCKELUNG, FORM,
BESTIMMTE DEFINITIONEN
§ 1CURRENCY, DENOMINATION, FORM,
CERTAIN DEFINITIONS
(1) Währung; Nennbetrag. Die Anleihe der Otto (GmbH & Co KG) (die "Emittentin"), begeben am 29. März 2012 (der "Begebungstag") im Gesamtnennbetrag von EUR [●] ist eingeteilt in auf den Inhaber lautende Schuldverschreibungen im Nennbetrag von je EUR 1.000 (die "Schuldverschreibungen" oder die "Anleihe").
(1) Currency; Principal Amount. The issue by Otto (GmbH & Co. KG) (the "Issuer") issued on 29 March 2012 (the "Issue Date") in the aggregate principal amount of EUR [●] is divided into notes in the principal amount of EUR 1,000 each payable to bearer (the "Notes" or the "Issue").
(2) Form. Die Schuldverschreibungen lauten auf den Inhaber.
(2) Form. The Notes are being issued in bearer form.
(3) Globalurkunde. Die Schuldverschreibungen sind durch eine veränderbare Sammelurkunde (die "Global-urkunde") ohne Zinsscheine verbrieft. Die durch die Globalurkunde verbrieften Schuld-verschreibungen entsprechen zu jeder Zeit dem gesamten Nennbetrag aller ausstehenden Schuldverschreibungen. Die Globalurkunde trägt die eigenhändigen Unterschriften zweier ordnungsgemäß bevollmächtigter Vertreter der Emittentin und ist von der Zahlstelle oder in deren Namen mit einem Zahlstellenvermerk versehen. Einzelurkunden und Zinsscheine werden nicht ausgegeben.
(3) Global Note. The Notes are represented by a variable global Note (the "Global Note") without coupons. The Notes represented by the Global Note will equal the aggregate principal amount of the Notes outstanding at any time. The Global Note shall be signed manually by two authorised signatories of the Issuer and shall be authenticated by or on behalf of the Paying Agent. Definitive Notes and interest coupons will not be issued.
(4) Clearing System. Die Globalurkunde wird solange vom oder im Namen des Clearingsystems verwahrt und darf vom Clearingsystem nicht übertragen werden, bis sämtliche Verbindlichkeiten der Emittentin aus den Schuldverschreibungen erfüllt sind. "Clearing System" bedeutet die Wertpapiersammelbank der Oesterreichische
(4) Clearing System. The Global Note will be kept in custody by or on behalf of the Clearing System and may not be transferred by the Clearing System until all obligations of the Issuer under the Notes have been satisfied. "Clearing System" means the central securities depository and clearing system (Wertpapiersammelbank) of Oesterreichische Kontrollbank
28
Kontrollbank Aktiengesellschaft. Aktiengesellschaft.
(5) Gläubiger von Schuldverschreibungen."Gläubiger" bedeutet jeder Inhaber eines Miteigentumsanteils oder anderen Rechts an den Schuldverschreibungen.
(5) Holder of Notes. "Holder" means any holder of a proportionate co-ownership or other beneficial interest or right in the Notes.
§ 2STATUS, NEGATIVVERPFLICHTUNG
§ 2STATUS, NEGATIVE PLEDGE
(1) Status. Die Schuldverschreibungen begründen unmittelbare, unbedingte, nicht besicherte und nicht nachrangige Verbindlichkeiten der Emittentin, die untereinander und mit allen anderen gegenwärtigen und zukünftigen nicht besicherten und nicht nachrangigen Verbindlichkeiten der Emittentin gleichrangig sind, soweit diesen Verbindlichkeiten nicht durch zwingende gesetzliche Bestimmungen ein Vorrang eingeräumt wird.
(1) Status. The obligations under the Notes constitute direct, unconditional, unsecured and unsubordinated obligations of the Issuer ranking pari passu among themselves and pari passu with all other unsecured and unsubordinated obligations of the Issuer, present or future, except for any obligations preferred by mandatory provisions of law.
(2) Negativverpflichtung. Solange die Schuldverschreibungen ausstehen, jedoch nur bis zu dem Zeitpunkt, an dem alle Beträge an Kapital und Zinsen der Zahlstelle zur Verfügung gestellt worden sind, verpflichtet sich die Emittentin und stellt für ihre Wesentlichen Tochtergesellschaften (wie in § 9 definiert) sicher, keine Kapitalmalmarktverbindlichkeiten (einschließlich dafür gegebener Garantien oder Gewährleistungen) durch Belastung ihres gegenwärtigen oder zukünftigen Vermögens bzw. des Vermögens einer Wesentlichen Tochtergesellschaft zu besichern oder eine solche Besicherung bestehen zu lassen (ausgenommen "zugelassene Sicherheiten"), ohne entweder die Gläubiger zur gleichen Zeit und im gleichem Rang an solchen Sicherheiten teilnehmen zu lassen oder den Gläubigern eine andere Sicherheit zu bestellen, die von den externen Wirtschaftsprüfern der Emittentin als gleichwertige Sicherheit anerkannt wird.
(2) Negative Pledge. So long as any of the Notes remains outstanding, but only until all amounts of principal and interest have been made available to the Paying Agent, the Issuer undertakes, and shall procure in respect of its Material Subsidiaries (as defined in § 9) neither to create nor permit to subsist any lien or other security interest (other than "Permitted Securities") upon any of its or any of its Material Subsidiaries' present or future assets to secure any Capital Markets Indebtedness (including any guarantees or indemnities in respect thereof), without at the same time according to the Holders equally and rateably the same security interest or such other security as will be recognised by the external auditors of the Issuer as being an equal security.
"Kapitalmarktverbindlichkeit" bezeichnet jede Verbindlichkeit zur Zahlung aufgenommener Geldbeträge, die durch Schuldverschreibungen oder sonstige Wertpapiere, die an einer Börse oder einem anderen Wertpapiermarkt (einschließlich des außerbörslichen Handels) notiert oder gehandelt werden oder werden könnten, verbrieft oder verkörpert sind sowie Schuldscheindarlehen. Nur zum Zweck dieses Absatzes gelten Verbindlichkeiten aus der Begebung von Asset-backed Schuldverschreibungen, bei denen die Rückgriffsmöglichkeit eines Gläubigers solcher Schuldverschreibungen auf bestimmte
"Capital Markets Indebtedness" means any obligation for the payment of borrowed monies which is in the form of, or represented by, bonds, notes, debentures or similar security, which are or are capable of being listed or traded on a stock exchange or other security market (including any over-the-counter market), as well as assignable loans (Schuldscheindarlehen). For the purposes of this subparagraph only, any indebtedness resulting from any issue of asset-backed securities under which the recourse of any holder of such securities is limited to certain assets or other securities securing those securities, shall not constitute a Capital Market
29
Vermögenswerte oder andere Wertpapiere, die die Schuldverschreibungen besichern, begrenzt ist, nicht als Kapitalmarktverbindlichkeiten.
Indebtedness.
"Zugelassene Sicherheiten" sind "Permitted Security" means
(i) Sicherheiten, die kraft Gesetzes eingeräumt sind;
(i) any security arising by operation of law,
(ii) Sicherheiten für Kapitalmarktverbindlichkeiten, die am Begebungstag (wie in § 3(1) definiert) bereits bestehen, solange sie diese Kapitalmarktverbindlichkeiten besichern, sowie künftige diese bestehenden Sicherheiten ersetzende andere Sicherheiten bis zur gleichen Höhe, jedoch nur soweit und solange sie der Besicherung der bestehenden Kapitalmarktverbindlichkeiten dienen; und
(ii) any security on Capital Market Indebtedness existing on the Issue Date (as defined in § 3(1)) as long as such security is given in relation to such Capital Market Indebtedness and any other future security replacing such existing security up to the original amount thereof, but only to the extent such security is given in relation to the existing Capital MarketIndebtedness, and
(iii) Sicherheiten, die bei der Finanzierung von Investitionen / Akquisitionen an diesen Investitions- bzw. Akquisitionsobjekten bestellt werden.
(iii) any security is given upon any investment or acquisition object with a view to secure the financing of such investment or acquisition.
§ 3ZINSEN
§ 3INTEREST
(1) Zinssatz und Zinszahlungstage. Die Schuldverschreibungen werden bezogen auf ihren Nennbetrag ab dem Begebungstag (einschließlich) bis zum Rückzahlungstag (wie in § 5(1) definiert) (ausschließlich) mit jährlich [●] %verzinst. Die Zinsen sind nachträglich am 29. September eines jeden Jahres zahlbar (jeweils ein "Zinszahlungstag"). Die erste Zinszahlung erfolgt am 29. September 2012 (erster kurzer Kupon).
(1) Rate of Interest and Interest Payment Dates. The Notes shall bear interest on their principal amount at the rate of [●] % per annum from (and including) the Issue Date to (but excluding) the Maturity Date (as defined in § 5(1)). Interest shall be payable annually in arrears on 29 September in each year (each such date, an "Interest Payment Date"). The first payment of interest shall be made on 29 September 2012 (first short coupon).
(2) Auflaufende Zinsen. Der Zinslauf der Schuldverschreibungen endet an dem Tag, der dem Tag vorausgeht, an dem sie zur Rückzahlung fällig werden. Falls die Emittentin die Schuldverschreibungen bei Fälligkeit nicht einlöst, erfolgt die Verzinsung der Schuldverschreibungen vom Tag der Fälligkeit bis zum Tag der tatsächlichen Rückzahlung der Schuldverschreibungen in Höhe des gesetzlich festgelegten Satzes für Verzugszinsen.
(2) Accrual of Interest. The Notes shall cease to bear interest as from the day preceding their due date for redemption. If the Issuer shall fail to redeem the Notes when due, interest shall continue to accrue on the outstanding principal amount of the Notes beyond the due date until the actual redemption of the Notes at the default rate of interest established by law.
(3) Berechnung der Zinsen für Teile von Zeiträumen. Sofern Zinsen für einen Zeitraum von weniger als ein Kalenderjahr zu berechnen sind, erfolgt die Berechnung auf der Grundlage des Zinstagequotienten (wie nachstehend definiert).
(3) Calculation of Interest for Partial Periods. If interest is required to be calculated for a period of less than a calendar year, such interest shall be calculated on the basis of the Day Count Fraction (as defined below).
(4) Zinstagequotient. "Zinstagequotient" (4) Day Count Fraction. "Day Count
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bezeichnet im Hinblick auf die Berechnung eines Zinsbetrages auf eine Schuldverschreibung für einen beliebigen Zeitraum (der "Zinsberechnungszeitraum") die tatsächliche Anzahl von Tagen im Zinsberechnungszeitraum, dividiert durch die tatsächliche Anzahl von Tagen in der jeweiligen Zinsperiode (Act/Act ICMA).
Fraction" means with regard to the calculation of interest on any Note for any period of time (the "Calculation Period") the actual number of days in the Calculation Period divided by the actual number of days in the respective interest period (Act/Act ICMA).
§ 4ZAHLUNGEN
§ 4PAYMENTS
(1)(a) Zahlungen auf Kapital. Zahlungen auf Kapital in Bezug auf die Schuldverschreibungen erfolgen nach Maßgabe des nachstehenden Absatzes (2) an das Clearing System oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearing Systems gegen Vorlage und (außer im Fall von Teilzahlungen) Einreichung der die Schuldverschreibungen verbriefenden Globalurkunde bei der bezeichneten Geschäftsstelle der Zahlstelle.
(1)(a) Payment of Principal. Payment of principal in respect of Notes shall be made, subject to subparagraph (2) below, to the Clearing System or to its order for credit to the accounts of the relevant account holders of the Clearing System upon presentation and (except in the case of partial payment) surrender of the Global Note representing the Notes at the specified office of the Paying Agent.
(b) Zahlung von Zinsen. Die Zahlung von Zinsen auf Schuldverschreibungen erfolgt nach Maßgabe von Absatz (2) an das Clearing System oder dessen Order zur Gutschrift auf den Konten der jeweiligen Kontoinhaber des Clearing Systems.
(b) Payment of Interest. Payment of interest on Notes shall be made, subject to subparagraph (2), to the Clearing System or to its order for credit to the relevant account holders of the Clearing System.
(2) Zahlungsweise. Vorbehaltlich geltender steuerlicher und sonstiger gesetzlicher Regelungen und Vorschriften erfolgen zu leistende Zahlungen auf die Schuldverschreibungen in Euro.
(2) Manner of Payment. Subject to applicable fiscal and other laws and regulations, payments of amounts due in respect of the Notes shall be made in Euro.
(3) Erfüllung. Die Emittentin wird durch Leistung der Zahlung an das Clearing System oder dessen Order von ihrer Zahlungspflicht befreit.
(3) Discharge. The Issuer shall be discharged by payment to, or to the order of, the Clearing System.
(4) Zahltag. Fällt der Fälligkeitstag einer Zahlung in Bezug auf eine Schuldverschreibung auf einen Tag, der kein Geschäftstag ist, dann hat der Gläubiger keinen Anspruch auf Zahlung vor dem nächsten Geschäftstag. Der Gläubiger ist nicht berechtigt, weitere Zinsen oder sonstige Zahlungen aufgrund dieser Verspätung zu verlangen. Für diese Zwecke bezeichnet "Geschäftstag" einen Tag (außer einem Samstag oder Sonntag), an dem alle betroffenen Bereiche des Trans-European Automated Real-time Gross Settlement Express Transfer 2 ("TARGET2") System betriebsbereit sind und das Clearing System Zahlungen abwickelt.
(4) Payment Business Day. If the date for payment of any amount in respect of any Note is not a Business Day, then the Holder shall not be entitled to payment until the next such Business Day and shall not be entitled to further interest or other payment in respect of such delay. For these purposes, "Business Day" means any day which is a day (other than a Saturday or a Sunday) on which all relevant parts of the Trans-European Automated Real-time Gross Settlement Express Transfer 2 ("TARGET2") System are operational and the Clearing System settles payments.
(5) Bezugnahmen auf Kapital und Zinsen. (5) References to Principal and Interest.
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Bezugnahmen in diesen Anleihebedingungen auf Kapital der Schuldverschreibungen schließen den Nennbetrag der Schuldverschreibungensowie jeden Aufschlag sowie sonstige auf oder in Bezug auf die Schuldverschreibungen zahlbaren Beträge ein. Bezugnahmen in diesen Anleihebedingungen auf Zinsen auf Schuldverschreibungen sollen, soweit anwendbar, sämtliche gemäß § 7 zahlbaren zusätzlichen Beträge einschließen.
Reference in these Conditions of Issue to principal in respect of the Notes shall be deemed to include, the principal amount of the Notes and any premium and any other amounts which may be payable under or in respect of the Notes. Reference in these Conditions of Issue to interest in respect of the Notes shall be deemed to include, as applicable, any Additional Amounts which may be payable under § 7.
(6) Hinterlegung von Kapital und Zinsen.Die Emittentin ist berechtigt, beim Amtsgericht Frankfurt am Main Zins- oder Kapitalbeträge zu hinterlegen, die von den Gläubigern nicht innerhalb von zwölf Monaten nach dem Fälligkeitstag beansprucht worden sind, auch wenn die Gläubiger sich nicht in Annahmeverzug befinden. Soweit eine solche Hinterlegung erfolgt, und auf das Recht der Rücknahme verzichtet wird, erlöschen die diesbezüglichen Ansprüche der Gläubiger gegen die Emittentin.
(6) Deposit of Principal and Interest. The Issuer may deposit with the Amtsgericht in Frankfurt am Main principal or interest not claimed by Holders within twelve months after the Maturity Date, even though such Holders may not be in default of acceptance of payment. If and to the extent that the deposit is effected and the right of withdrawal is waived, the respective claims of such Holders against the Issuer shall cease.
§ 5RÜCKZAHLUNG, VORZEITIGE
RÜCKZAHLUNG
§ 5REDEMPTION, EARLY REDEMPTION
(1) Rückzahlung bei Endfälligkeit. Soweit nicht zuvor bereits ganz oder teilweise zurückgezahlt oder angekauft und entwertet, werden die Schuldverschreibungen zu ihrem Nennbetrag zuzüglich etwaiger aufgelaufener Zinsen am 29. September 2017 (der "Rückzahlungstag") zurückgezahlt.
(1) Redemption at Maturity. Unless previously redeemed in whole or in part or purchased and cancelled, the Notes shall be redeemed at their principal amount together with accrued interest (if any) on 29 September 2017 (the "Maturity Date").
(2) Vorzeitige Rückzahlung aus steuerlichen Gründen. Die Schuldverschreibungen können insgesamt, jedoch nicht teilweise, nach Wahl der Emittentin mit einer Kündigungsfrist von nicht weniger als 30 und nicht mehr als 60 Tagen gegenüber der Zahlstelle und gemäß § 12 gegenüber den Gläubigern vorzeitig gekündigt und zum Nennbetrag zuzüglich etwaiger bis zum für die Rückzahlung festgesetzten Tag aufgelaufener Zinsen zurückgezahlt werden, falls die Emittentin als Folge einer Änderung oder Ergänzung der Steuer- oder Abgabengesetze oder –vorschriften der Bundesrepublik Deutschland oder deren politischen Untergliederungen oder Steuerbehörden oder als Folge einer Änderung oder Ergänzung der Anwendung oder der offiziellen Auslegung dieser Gesetze und Vorschriften (vorausgesetzt diese Änderung oder Ergänzung wird am oder nach dem Begebungstag wirksam) am nächsten Zinszahlungstag (wie in § 3 (1) definiert) zur Zahlung von zusätzlichen Beträgen (wie in § 7
(2) Early Redemption for Reasons of Taxation. If as a result of any change in, or amendment to, the laws or regulations of the Federal Republic of Germany or any political subdivision or taxing authority thereto or therein affecting taxation or the obligation to pay duties of any kind, or any change in, or amendment to, an official interpretation or application of such laws or regulations, which amendment or change is effective on or after the Issue Date, the Issuer is required to pay Additional Amounts (as defined in § 7 herein) on the next succeeding Interest Payment Date (as defined in § 3(1)), and this obligation cannot be avoided by the use of reasonable measures available to the Issuer, the Notes may be redeemed, in whole but not in part, at the option of the Issuer, upon not more than 60 days' nor less than 30 days' prior notice of redemption given to the Paying Agent and, in accordance with § 12 to the Holders, at their principal amount together with interest (if any) accrued to the date fixed for redemption.
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dieser Anleihebedingungen definiert) verpflichtet sein wird und diese Verpflichtung nicht durch das Ergreifen vernünftiger der Emittentin zur Verfügung stehender Maßnahmen vermieden werden kann.
Eine solche Kündigung darf allerdings nicht (i) früher als 90 Tage vor dem frühestmöglichen Termin erfolgen, an dem die Emittentin verpflichtet wäre, solche zusätzlichen Beträge zu zahlen, falls eine Zahlung auf die Schuldverschreibungen dann fällig sein würde, oder (ii) erfolgen, wenn zu dem Zeitpunkt, zu dem die Kündigung erfolgt, die Verpflichtung zur Zahlung von zusätzlichen Beträgen oder zum Einbehalt oder Abzug nicht mehr wirksam ist.
However, no such notice of redemption may be given (i) earlier than 90 days prior to the earliest date on which the Issuer would be obligated to pay such Additional Amounts were a payment in respect of the Notes then due, or (ii) if at the time such notice is given, such obligation to pay such Additional Amounts or make such deduction or withholding does not remain in effect.
Eine solche Kündigung hat gemäß § 12 zu erfolgen. Sie ist unwiderruflich, muss den für die Rückzahlung festgelegten Termin nennen und eine zusammenfassende Erklärung enthalten, welche die das Rückzahlungsrecht der Emittentin begründenden Umstände darlegt.
Any such notice shall be given in accordance with § 12. It shall be irrevocable, must specify the date fixed for redemption and must set forth a statement in summary form of the facts constituting the basis for the right of the Issuer so to redeem.
(3) Vorzeitige Rückzahlung bei Eintritt eines Kontrollwechsels.
(3) Early Redemption following a Change of Control.
(a) Ein "Kontrollwechsel" gilt als eingetreten, wenn eine Person oder mehrere Personen, die am Begebungstag nicht Gesellschafter der Emittentin oder ihrer Komplementärin waren und die im Sinne von § 22 Absatz 2 Wertpapierhandelsgesetz (WpHG) abgestimmt handeln, oder einer oder mehrere Dritte, die im Auftrag einer solchen Person oder Personen handeln, zu irgendeiner Zeit mittelbar oder unmittelbar (i) mehr als 50 % des Kommanditkapitals der Emittentin oder mehr als 50 % des Stammkapitals ihrer Komplementärin oder (ii) eine solche Anzahl von Anteilen am Kommanditkapital der Emittentin oder Stammkapital ihrer Komplementärin erworben hat, auf die mehr als 50 % der bei jeweiligen Gesellschafterversammlungen der Emittentin oder ihrer Komplementärin stimmberechtigten Stimmrechte entfallen.
(a) A "Change of Control" will be deemed to have occurred if any person or persons, who on the Issue Date were not partners of the Issuer or shareholders its general partner, acting in concert (as defined in § 22 (2) of the German Securities Trading Act (Wertpapierhandelsgesetz - WpHG) or any person or persons acting on behalf of any such person(s), at any time directly or indirectly acquire(s) (i) more than 50 % of the limited liability capital (Kommanditkapital) of the Issuer or more than 50 % of the share capital (Stammkapital) of its general partner or (ii) such number of partnership interests (Anteile am Kommanditkapital) of the Issuer or shares in the capital (Anteile am Stammkapital) of its general partner carrying more than 50 % of the voting rights exercisable at respective general meetings of the Issuer or its general partner.
(b) Wenn ein Kontrollwechsel eingetreten ist, kann die Emittentin nach eigenem Ermessen entweder
(b) If a Change of Control occurs, the Issuer may at its sole discretion elect to either
(i) von Moody's Investors Services Limited ("Moody's") oder Standard & Poor's Rating Services, a division of The McGraw-Hill Companies Inc. ("S&P") (oder einer jeweiligen
(i) obtain, within six months following the Change of Control, at least an Investment Grade Rating for the Notes from Moody's Investors Services Limited ("Moody's") or
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Nachfolgegesellschaft) innerhalb von 6 Monaten nach dem Kontrollwechsel mindestens ein Investment Grade Rating für die Schuldverschreibungen einholen; oder
Standard & Poor's Rating Services, a division of The McGraw-Hill Companies Inc. ("S&P") or its respective successor companies; or
(ii) die Schuldverschreibungen insgesamt, und nicht teilweise, zu ihrem Nennbetrag zuzüglich etwaiger aufgelaufener Zinsenzurückzahlen.
(ii) redeem the Notes, in whole but not in part, at their principal amount together with accrued interest (if any).
(c) Wenn ein Kontrollwechsel eingetreten ist, wird die Emittentin innerhalb von 14 Tagen nach dem Kontrollwechsel den Gläubigern davon Mitteilung gemäß § 12 machen (eine "Kontrollwechselmitteilung"). In der Kontrollwechselmitteilung sind die Umstände des Kontrollwechsels und die Information anzugeben, ob die Emittentin beabsichtigt, die Schuldverschreibungen zurückzuzahlen oder ein Investment Grade Rating für die Schuldverschreibungen zu beantragen. Wählt die Emittentin die Rückzahlung der Schuldverschreibungen, wird sie gleichzeitig den Rückzahlungstermin bekannt machen, der auf einen Tag frühestens 30 und höchstens 60 Tage nach Veröffentlichung der Kontrollwechselmitteilung festzusetzen ist.
(c) If a Change of Control has occurred then, within 14 days following the Change of Control the Issuer shall give notice thereof (a "Change of Control Notice") to the Holders in accordance with § 12 specifying the circumstances of the Change of Control and whether the Issuer intends to redeem the Notes or to apply for an Investment Grade Rating of the Notes. If the Issuer elects to redeem the Notes, it shall publish simultaneously the date for redemption which shall be a day not earlier than 30 and not later than 60 days after publication of the Change of Control Notice.
(d) Hat die Emittentin gemäß § 5(3)(b)(i) gewählt, ein Investment Grade Rating für die Schuldverschreibungen zu beantragen, und wird ein solches Rating nicht innerhalb von sechs Monaten nach Eintritt des Kontrollwechsels erteilt, so hat die Emittentin unverzüglich einen Rückzahlungstermin für die Schuldverschreibungen gemäß § 12 bekanntzumachen, der auf einen Tag frühestens zehn und höchstens zwanzig Tage nach Veröffentlichung der Mitteilung festzusetzen ist.
(d) In the case that the Issuer has elected pursuant to § 5(3)(b) (i) that it will apply for the assignment of an Investment Grade Rating for the Notes and such rating will not be granted within six months after the Change of Control has occurred, the Issuer shall promptly publish in accordance with § 12 a date for the redemption of the Notes which date shall not be earlier than ten and not be later than twenty days after such publication.
"Investment Grade Rating" bezeichnet ein Rating von BBB- im Fall eines von S&P erteilten Ratings und Baa3 im Fall eines von Moody's (oder einer jeweiligen Nachfolgegesellschaft) erteilten Ratings.
"Investment Grade Rating" means a level of BBB- (in the case of S&P) and Baa3 (in the case of Moody's) or its respective successor companies.
§ 6DIE ZAHLSTELLE
§ 6THE PAYING AGENT
(1) Bestellung; bezeichnete Geschäftsstelle. Die anfänglich bestellte
(1) Appointment; Specified Offices. The initial paying agent (the "Paying Agent") and its
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Zahlstelle (die "Zahlstelle") und deren jeweilige bezeichnete Geschäftsstelle lauten wie folgt:
initial specified offices are:
Raiffeisen Bank International AGAm Stadtpark 91030 WienÖsterreich
Raiffeisen Bank International AGAm Stadtpark 91030 ViennaAustria
Die Zahlstelle behält sich das Recht vor, jederzeit ihre bezeichnete Geschäftsstelle durch eine andere bezeichnete Geschäftsstelle in derselben Stadt zu ersetzen.
The Paying Agent reserves the right at any time to change its specified office to some other specified office in the same city.
(2) Änderung der Bestellung oder Abberufung. Die Emittentin behält sich das Recht vor, jederzeit die Bestellung der Zahlstelle oder einer Weiteren Zahlstelle zu ändern oder zu beenden und eine andere Zahlstelle oder zusätzliche oder andere Zahlstellen (die "Weitere Zahlstelle") zu bestellen. Die Emittentin wird zu jedem Zeitpunkt eine Zahlstelle unterhalten. Eine Änderung, Abberufung, Bestellung oder ein sonstiger Wechsel wird nur wirksam (außer im Insolvenzfall, in dem eine solche Änderung sofort wirksam wird), sofern die Gläubiger hierüber gemäß § 12 vorab unter Einhaltung einer Frist von mindestens 30 und nicht mehr als 45 Tagen informiert wurden.
(2) Variation or Termination of Appointment. The Issuer reserves the right at any time to vary or terminate the appointment of the Paying Agent or any Additional Paying Agent and to appoint another Paying Agent or additional or other paying agents the "Additional Paying Agent"). The Issuer shall at all times maintain a Paying Agent. Any variation, termination, appointment or change shall only take effect (other than in the case of insolvency, when it shall be of immediate effect) after not less than 30 nor more than 45 days' prior notice thereof shall have been given to the Holders in accordance with § 12.
(3) Erfüllungsgehilfen der Emittentin. Die Zahlstelle und jede Weitere Zahlstelle handeln ausschließlich als Erfüllungsgehilfen der Emittentin und übernehmen keinerlei Verpflichtungen gegenüber den Gläubigern und es wird kein Auftrags- oder Treuhandverhältnis zwischen ihnen und den Gläubigern begründet.
(3) Agents of the Issuer. The Paying Agent and any Additional Paying Agent act solely as agents of the Issuer and do not have any obligations towards or relationship of agency or trust to any Holder.
§ 7STEUERN
§ 7TAXATION
Sämtliche auf die Schuldverschreibungen zu zahlenden Beträge sind ohne Einbehalt oder Abzug von oder aufgrund von gegenwärtigen oder zukünftigen Steuern oder sonstigen Abgaben gleich welcher Art zu leisten, die von oder in der Bundesrepublik Deutschland oder für deren Rechnung oder von oder für Rechnung einer politischen Untergliederung oder Steuerbehörde der oder in der Bundesrepublik Deutschland auferlegt oder erhoben werden, es sei denn, die Emittentin ist zu einem solchen Einbehalt oder Abzug gesetzlich verpflichtet. In diesem Fall wird die Emittentin diejenigen zusätzlichen Beträge (die "zusätzlichen Beträge") zahlen, die erforderlich sind, damit die den Gläubigern zufließenden Nettobeträge nach einem solchen Einbehalt oder Abzug jeweils den
All amounts payable in respect of the Notes shall be made without withholding or deduction for or on account of any present or future taxes or duties of whatever nature imposed or levied by way of withholding or deduction by or on behalf of the Federal Republic of Germany or any political subdivision or any authority thereof or therein having power to tax unless the Issuer is required by law to make such withholding or deduction. In such event, the Issuer shall pay such additional amounts (the "Additional Amounts") as shall be necessary in order that the net amounts received by the Holders, after such withholding or deduction shall equal the respective amounts which would otherwise have been receivable in the absence of such withholding or deduction. No such Additional
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Beträgen entsprechen, die ohne einen solchen Einbehalt oder Abzug von den Gläubigern empfangen worden wären; die Verpflichtung zur Zahlung solcher zusätzlichen Beträge besteht jedoch nicht für solche Steuern und Abgaben, die:
Amounts shall be payable on account of any taxes or duties which:
(a) von einer als Depotbank oder Inkassobeauftragter des Gläubigers handelnden Person oder sonst auf andere Weise zu entrichten sind als dadurch, dass die Emittentin aus den von ihr zu leistenden Zahlungen von Kapital oder Zinsen einen Abzug oder Einbehalt vornimmt, oder
(a) are payable by any person acting as custodian bank or collecting agent on behalf of a Holder, or otherwise in any manner which does not constitute a deduction or withholding by the Issuer from payments of principal or interest made by it, or
(b) wegen einer gegenwärtigen oder früheren persönlichen oder geschäftlichen Beziehung des Gläubigers zur Bundesrepublik Deutschland zu zahlen sind, und nicht allein deshalb, weil Zahlungen auf die Schuldverschreibungen aus Quellen in der Bundesrepublik Deutschland stammen (oder für Zwecke der Besteuerung so behandelt werden) oder dort besichert sind; oder
(b) are payable by reason of the Holder having, or having had, some personal or business connection with the Federal Republic of Germany and not merely by reason of the fact that payments in respect of the Notes are, or for purposes of taxation are deemed to be, derived from sources in, or are secured in, the Federal Republic of Germany, or
(c) von einer Zahlstelle einbehalten oder abgezogen werden, wenn die Zahlung von einer anderen Zahlstelle ohne den Einbehalt oder Abzug hätte vorgenommen werden können; oder
(c) are withheld or deducted by a Paying Agent from a payment if the payment could have been made by another Paying Agent without such withholding or deduction, or
(d) aufgrund (i) einer Richtlinie oder Verordnung der Europäischen Union betreffend die Besteuerung von Zinserträgen oder (ii) einer zwischenstaatlichen Vereinbarung über deren Besteuerung, an der die Bundesrepublik Deutschland oder die Europäische Union beteiligt ist, oder (iii) einer gesetzlichen Vorschrift, die diese Richtlinie, Verordnung oder Vereinbarung umsetzt oder befolgt, abzuziehen oder einzubehalten sind, oder
(d) are deducted or withheld pursuant to (i) any European Union Directive or Regulation concerning the taxation of interest income, or (ii) any international treaty or understanding relating to such taxation and to which the Federal Republic of Germany or the European Union is a party, or (iii) any provision of law implementing, or complying with, or introduced to conform with, such Directive, Regulation, treaty or understanding, or
(e) wegen einer Rechtsänderung zu zahlen sind, welche später als 30 Tage nach Fälligkeit der betreffenden Zahlung oder, wenn dies später erfolgt, ordnungsgemäßer Bereitstellung aller fälligen Beträge und einer diesbezüglichen Bekanntmachung gemäß § 12 wirksam wird.
(e) are payable by reason of a change in law that becomes effective more than 30 days after the relevant payment becomes due, or is duly provided for and notice thereof is published in accordance with § 12, whichever occurs later.
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§ 8VORLEGUNGSFRIST
§ 8PRESENTATION PERIOD
Die in § 801 Absatz (1) Satz 1 BGB bestimmte Vorlegungsfrist wird für die Schuldverschreibungen auf zehn Jahre verkürzt.
The presentation period provided in § 801 (1), sentence 1 BGB (German Civil Code) is reduced to ten years for the Notes.
§ 9KÜNDIGUNG
§ 9EVENTS OF DEFAULT
(1) Kündigungsgründe. Jeder Gläubiger ist berechtigt, seine Schuldverschreibungen zu kündigen und deren sofortige Rückzahlung zu ihrem Nennbetrag zuzüglich etwaiger bis zum Tage der Rückzahlung aufgelaufener Zinsen zu verlangen, falls:
(1) Events of default. Each Holder shall be entitled to declare his Notes due and demand immediate redemption thereof at their principal amount together with accrued interest (if any) to the date of repayment, in the event that
(a) die Emittentin Kapital oder Zinsen nicht innerhalb von 7 Tagen nach dem betreffenden Fälligkeitstag zahlt, oder
(a) the Issuer fails to pay principal or interest within 7 days from the relevant due date; or
(b) die Emittentin die ordnungsgemäße Erfüllung irgendeiner anderen wesentlichen Verpflichtung aus den Schuldverschreibungen unterlässt und die Unterlassung länger als 15 Tage fortdauert, nachdem die Zahlstelle hierüber eine Benachrichtigung von einem Gläubiger erhalten hat, oder
(b) the Issuer fails duly to perform any other material obligation arising from the Notes and such failure continues for more than 15 days after the Paying Agent has received notice thereof from a Holder; or
(c) die Emittentin oder eine ihrer Wesentlichen Tochtergesellschaften eine Zahlungsverpflichtung aus anderen Kapitalmarktverbindlichkeiten (wie in § 2 definiert) oder aus einer Garantie oder Gewährleistung für eine solche Zahlungsverpflichtung aus Kapitalmarktverbindlichkeiten Dritter bei Fälligkeit nicht erfüllt und diese Nichterfüllung länger als 30 Tage fortdauert, nachdem die Emittentin hierüber von einem Gläubiger eine Benachrichtigung erhalten hat, oder eine solche Zahlungsverpflichtung der Emittentin oder eine ihrer Wesentlichen Tochtergesellschaften infolge Vorliegens eines Kündigungsgrundes vorzeitig fällig wird, soweit der Betrag der Zahlungsverpflichtungen, einzeln oder zusammen, den Betrag von EUR 10.000.000 (oder dessen Gegenwert in einer anderen Währung oder anderen Währungen) übersteigt, oder
(c) the Issuer or any Material Subsidiary fails to fulfil any payment obligation, when due, arising from any other Capital Market Indebtedness (as defined in § 2) or from any guarantee or indemnity for the payment obligation from a Capital Market Indebtedness on the part of a third party and such default continues for more than 30 days after notice of such default is given to the Issuer by a Holder, or any such payment obligation can become due prematurely by reason of any default of the Issuer or any Material Subsidiary, provided the amount of such payment obligations, individually or in aggregate, exceeds the amount of EUR 10,000,000 (or its equivalent in another currency or other currencies), or
(d) die Emittentin oder eine Wesentliche Tochtergesellschaft ihre Zahlungen einstellt oder ihre Zahlungsunfähigkeit
(d) the Issuer or a Material Subsidiary ceases to effect payments or announces its inability to meet its financial obligations; or
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allgemein bekanntgibt, oder
(e) ein Gericht ein Insolvenzverfahren oder ähnliches Verfahren gegen die Emittentin oder eine Wesentliche Tochtergesellschaft eröffnet, ein solches Verfahren eingeleitet und nicht innerhalb von 60 Tagen aufgehoben oder ausgesetzt worden ist, oder die Emittentin oder eine Wesentliche Tochtergesellschaft ein solches Verfahren beantragt oder einleitet oder eine allgemeine Schuldenregelung zugunsten ihrer Gläubiger anbietet oder trifft oder falls in Bezug auf die Emittentin oder eine Wesentliche Tochtergesellschaft Maßnahmen beschlossen oder eingeleitet werden, die eine Zahlungseinstellung oder Schuldenregelung veranlassen oder bewirken, oder
(e) a court institutes insolvency or similar proceedings against the Issuer or a Material Subsidiary, such proceedings are commenced and not set aside or suspended within 60 days, or the Issuer or a Material Subsidiary applies for or institutes such proceedings or offers or makes a general arrangement for the benefit of its creditors or if in respect of the Issuer or a Material Subsidiary measures are determined or instituted which result in a suspension of payments or a general arrangement with creditors; or
(f) die Emittentin oder eine Wesentliche Tochtergesellschaft ihre Geschäftstätigkeit ganz oder überwiegend einstellt, alle oder wesentliche Teile ihrer Vermögenswerte veräußert oder anderweitig abgibt und dadurch den Wert ihres Vermögens wesentlich vermindert, oder
(f) the Issuer or a Material Subsidiary ceases to carry on its business in whole or greater part, sells or otherwise disposes of all or a material part of its assets and thereby materially reduces the value of its assets; or
(g) die Emittentin oder eine Wesentliche Tochtergesellschaft in Liquidation tritt, es sei denn, dies geschieht im Zusammenhang mit einer Verschmelzung, Konsolidierung oder einer anderen Form des Zusammenschlusses mit einer anderen Gesellschaft oder im Zusammenhang mit einer Umwandlung und die andere oder neue Gesellschaft übernimmt alle Verpflichtungen, die die Emittentin im Zusammenhang mit diesen Schuldverschreibungen eingegangen ist.
(g) the Issuer or a Material Subsidiary goes into liquidation unless this is done in connection with a merger, consolidation or other form of combination, with another company or in connection with a change in the legal form of the Issuer or a Material Subsidiary and the other or new company assumes all obligations which the Issuer has undertaken in connection with the Notes.
Im Sinne dieser Anleihebedingungen bedeutet For the purpose of these Conditions of Issue,
"Tochtergesellschaft" jede Gesellschaft, an der die Emittentin direkt oder indirekt mehrheitlich beteiligt ist; und
"Subsidiary" means an entity in which the Issuer holds directly or indirectly a majority interest; and
"Wesentliche Tochtergesellschaft" (i) jede nach den International Financial Reporting Standards (IFRS) oder dem jeweils angewendeten Bilanzierungsstandard konsolidierte Tochtergesellschaft der Emittentin, deren Nettoumsatz bzw. deren Vermögenswerte gemäß ihres letzten geprüften, nicht konsolidierten Jahresabschlusses (bzw., wenn die betreffende Tochtergesellschaft selbst Konzernabschlüsse erstellt, deren konsolidierter Umsatz bzw. deren konsolidierte Vermögenswerte gemäß ihres letzten geprüften
"Material Subsidiary" means (i) any Subsidiary of the Issuer consolidated in accordance with the International Financial Reporting Standards (IFRS) or any other relevant accounting standards applicable to the Issuer, whose net revenues or total assets pursuant to its most recent audited non-consolidated financial statements (or, if the relevant Subsidiary itself prepares own consolidated financial statements, whose consolidated net revenues or consolidated total assets pursuant to its most recent audited consolidated financial
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Konzernabschlusses), der für die Erstellung des letzten geprüften Konzernabschlusses der Emittentin genutzt wurde, mindestens 10 % des konsolidierten Gesamtumsatzes und/oder 10 %der konsolidierten Vermögenswerte der Emittentin und ihrer konsolidierten Tochtergesellschaften betragen hat oder (ii) eine Tochtergesellschaft, auf die der gesamte oder im Wesentlichen gesamte Betrieb und Vermögenswerte von einer Wesentlichen Tochtergesellschaft übertragen wurde.
statements), which was used for the preparation of the most recent audited consolidated financial statements of the Issuer amounts to at least 10 % of the consolidated total net revenues and/or 10 % of the consolidated total assets of the Issuer and its consolidated Subsidiaries or (ii) any Subsidiary, to whom the total of or substantially all of the business and assets of a Material Subsidiary was transferred.
Das Kündigungsrecht erlischt, falls der Kündigungsgrund vor Ausübung des Rechts geheilt wurde.
The right to declare Notes due shall terminate if the situation giving rise to it has been cured before the right is exercised.
(2) Bekanntmachung. Eine Benachrichtigung, einschließlich einer Kündigung der Schuldverschreibungen gemäß vorstehendem Absatz 1 ist schriftlich in deutscher oder englischer Sprache gegenüber der Zahlstelle zu erklären und von der Depotbank des Gläubigers persönlich oder per Einschreiben an deren bezeichnete Geschäftsstelle zu übermitteln. Der Benachrichtigung ist ein Nachweis beizufügen, aus dem sich ergibt, dass der betreffende Gläubiger zum Zeitpunkt der Abgabe der Benachrichtigung Inhaber der betreffenden Schuldverschreibung ist. Der Nachweis kann durch eine Bescheinigung der Depotbank (wie in § 13(3) definiert) oder auf andere geeignete Weise erbracht werden.
(2) Form of Notice. Any notice, including any notice declaring Notes due, in accordance with subparagraph (1) shall be made by means of a written declaration in the German or English language delivered by the Custodian by hand or registered mail to the specified office of the Paying Agent together with proof that such Holder at the time of such notice is the holder of the relevant Notes by means of a certificate of his Custodian (as defined in § 13 (3)) or in any other appropriate manner.
§ 10ERSETZUNG
§ 10SUBSTITUTION
(1) Ersetzung. Die Emittentin ist jederzeit berechtigt, sofern sie sich nicht mit einer Zahlung von Kapital oder Zinsen auf die Schuldverschreibungen in Verzug befindet, ohne Zustimmung der Gläubiger eine Wesentliche Tochtergesellschaft an ihrer Stelle als Hauptschuldnerin (die "Nachfolgeschuldnerin") für alle Verpflichtungen aus und im Zusammenhang mit diesen Schuldverschreibungen einzusetzen, vorausgesetzt, dass:
(1) Substitution. The Issuer may, without the consent of the Holders, if no payment of principal of or interest on any of the Notes is in default, at any time substitute for the Issuer any Material Subsidiary as principal debtor in respect of all obligations arising from or in connection with the Notes (the "Substitute Debtor") provided that:
(a) die Nachfolgeschuldnerin alle Verpflichtungen der Emittentin in Bezug auf die Schuldverschreibungen übernimmt;
(a) the Substitute Debtor assumes all obligations of the Issuer in respect of the Notes;
(b) die Emittentin und die Nachfolgeschuldnerin alle erforderlichen Genehmigungen erlangt haben und berechtigt sind, an die Zahlstelle die zur
(b) the Issuer and the Substitute Debtor have obtained all necessary authorisations and may transfer to the Paying Agent in euro and without being obligated to deduct or
39
Erfüllung der Zahlungsverpflichtungen aus den Schuldverschreibungen zahlbaren Beträge in Euro zu zahlen, ohne verpflichtet zu sein, jeweils in dem Land, in dem die Nachfolgeschuldnerin oder die Emittentin ihren Sitz oder Steuersitz haben, erhobene Steuern oder andere Abgaben jeder Art abzuziehen oder einzubehalten;
withhold any taxes or other duties of whatever nature levied by the country in which the Substitute Debtor or the Issuer has its domicile or tax residence, all amounts required for the fulfilment of the payment obligations arising under the Notes;
(c) die Nachfolgeschuldnerin sich verpflichtet hat, jeden Gläubiger hinsichtlich solcher Steuern, Abgaben oder behördlichen Lasten freizustellen, die einem Gläubiger bezüglich der Ersetzung auferlegt werden;
(c) the Substitute Debtor has agreed to indemnify and hold harmless each Holder against any tax, duty, assessment or governmental charge imposed on such Holder in respect of such substitution;
(d) die Emittentin unwiderruflich und unbedingt gegenüber den Gläubigern die Zahlung aller von der Nachfolgeschuldnerin auf die Schuldverschreibungen zahlbaren Beträge garantiert; und
(d) the Issuer irrevocably and unconditionally guarantees in favour of each Holder the payment of all sums payable by the Substitute Debtor in respect of the Notes; and
(e) der Zahlstelle ein oder mehrere Rechtsgutachten von anerkannten Rechtsanwälten vorgelegt werden, die bestätigen, dass die Bestimmungen in den vorstehenden Unterabsätzen (a), (b), (c) und (d) erfüllt wurden.
(e) there shall have been delivered to the Paying Agent an opinion or opinions of lawyers of recognised standing to the effect that subparagraphs (a), (b), (c) and (d) above have been satisfied.
(2) Bekanntmachung. Jede Ersetzung ist gemäß § 12 bekannt zu machen.
(2) Notice. Notice of any such substitution shall be published in accordance with § 12.
(3) Änderung von Bezugnahmen. Im Fall einer Ersetzung gilt jede Bezugnahme in diesen Anleihebedingungen auf die Emittentin ab dem Zeitpunkt der Ersetzung als Bezugnahme auf die Nachfolgeschuldnerin, und jede Bezugnahme auf die Bundesrepublik Deutschland gilt ab diesem Zeitpunkt als Bezugnahme auf das Land, in dem die Nachfolgeschuldnerin ihren Sitz oder Steuersitz hat. Des Weiteren gilt im Fall einer Ersetzung folgendes:
(3) Change of References. In the event of any such substitution, any reference in these Conditions of Issue to the Issuer shall from then on be deemed to refer to the Substitute Debtor and any reference to the Federal Republic of Germany shall from then on be deemed to refer to the country of domicile or residence for taxation purposes of the Substitute Debtor. Furthermore, in the event of such substitution the following shall apply:
(a) in § 7 und § 5(2) gilt eine alternative Bezugnahme auf die Bundesrepublik Deutschland als aufgenommen (zusätzlich zu der Bezugnahme nach Maßgabe des vorstehenden Satzes auf das Land, in dem die Nachfolgeschuldnerin ihren Sitz oder Steuersitz hat); und
(a) in § 7 and § 5(2) an alternative reference to the Federal Republic of Germany shall be deemed to have been included in addition to the reference according to the preceding sentence to the country of domicile or residence for taxation purposes of the Substitute Debtor; and
(b) in § 9(1)(c) bis (g) gilt eine alternative Bezugnahme auf die Emittentin in ihrer Eigenschaft als Garantin als aufgenommen (zusätzlich zu der Bezugnahme auf die Nachfolgeschuldnerin).
(b) in § 9(1)(c) to (g) an alternative reference to the Issuer in its capacity as guarantor shall be deemed to have been included in addition to the reference to the Substitute Debtor.
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§ 11BEGEBUNG WEITERER
SCHULDVERSCHREIBUNGEN, ANKAUF UND ENTWERTUNG
§ 11FURTHER ISSUES, PURCHASES AND
CANCELLATION
(1) Begebung weiterer Schuldverschreibungen. Die Emittentin ist berechtigt, jederzeit ohne Zustimmung der Gläubiger weitere Schuldverschreibungen mit gleicher Ausstattung (gegebenenfalls mit Ausnahme des Tags der Begebung, des Verzinsungsbeginns und/oder des Ausgabepreises) in der Weise zu begeben, dass sie mit diesen Schuldverschreibungen eine einheitliche Serie bilden.
(1) Further Issues. The Issuer may from time to time, without the consent of the Holders,issue further Notes having the same Conditions of Issue as the Notes in all respects (or in all respects except for the issue date, interest commencement date and/or issue price) so as to form a single Series with the Notes.
(2) Ankauf. Die Emittentin ist berechtigt, Schuldverschreibungen im Markt oder anderweitig zu jedem beliebigen Preis zu kaufen. Die von der Emittentin erworbenen Schuldverschreibungen können nach Wahl der Emittentin von ihr gehalten, weiterverkauft oder bei der Zahlstelle zwecks Entwertung eingereicht werden. Sofern diese Käufe durch öffentliches Angebot erfolgen, muss dieses Angebot allen Gläubigern gemacht werden.
(2) Purchases. The Issuer may at any time purchase Notes in the open market or otherwise and at any price. Notes purchased by the Issuer may, at the option of the Issuer, be held, resold or surrendered to the Paying Agent for cancellation. If purchases are made by tender, tenders for such Notes must be made available to all Holders of such Notes alike.
(3) Entwertung. Sämtliche vollständig zurückgezahlten und bei der Zahlstelle zur Entwertung eingereichten Schuldverschreibungen sind unverzüglich zu entwerten und können nicht wiederbegeben oder wiederverkauft werden.
(3) Cancellation. All Notes redeemed in full and delivered to the Paying Agent for cancellation shall be cancelled forthwith and may not be reissued or resold.
§ 12MITTEILUNGEN
§ 12NOTICES
(1) Bekanntmachung. Alle die Schuldverschreibungen betreffenden Mitteilungen erfolgen durch elektronische Publikation auf der Website der Luxemburger Börse (www.bourse.lu). Jede Mitteilung gilt am dritten Tag nach dem Tag der Veröffentlichung als wirksam erfolgt.
(1) Publication. All notices concerning the Notes will be made by means of electronic publication on the internet website of the Luxembourg Stock Exchange (www.bourse.lu). Any notice so given will be deemed to have been validly given on the third day following the date of such publication.
(2) Mitteilungen an das Clearing System.Die Emittentin wird alle die Schuldverschreibungen betreffenden Mitteilungen an das Clearing System zur Weiterleitung an die Gläubiger übermitteln. Jede derartige Mitteilung gilt am siebten Kalendertag nach dem Tag der Mitteilung an das Clearing System als den Gläubigern mitgeteilt.
(2) Notification to Clearing System. The Issuer shall deliver the relevant notice to the Clearing System for communication by the Clearing System to the Holders. Any such notice shall be deemed to have been validly given on the seventh calendar day after the day on which the said notice was given to the Clearing System.
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§ 13ANWENDBARES RECHT, GERICHTSSTAND;
GERICHTLICHE GELTENDMACHUNG, ÄNDERUNGEN DER ANLEIHEBEDINGUNGEN
UND GEMEINSAMER VERTRETER
§ 13APPLICABLE LAW, PLACE OF
JURISDICTION, ENFORCEMENT, AMENDMENTS OF THE CONDITIONS OF
ISSUE AND HOLDERS' REPRESENTATIVE
(1) Anwendbares Recht. Form und Inhalt der Schuldverschreibungen sowie die Rechte und Pflichten der Gläubiger und der Emittentin bestimmen sich in jeder Hinsicht nach deutschem Recht.
(1) Applicable Law. The Notes, as to form and content, and all rights and obligations of the Holders and the Issuer, shall be governed by German law.
(2) Gerichtsstand. Nicht ausschließlich zuständig für sämtliche im Zusammenhang mit den Schuldverschreibungen entstehenden Klagen oder sonstige Verfahren ("Rechtsstreitigkeiten") ist das Landgericht Hamburg.
(2) Place of Jurisdiction. The District Court (Landgericht) in Hamburg shall have non-exclusive jurisdiction for any action or other legal proceedings ("Proceedings") arising out of or in connection with the Notes.
(3) Gerichtliche Geltendmachung. Jeder Gläubiger von Schuldverschreibungen ist berechtigt, in jedem Rechtsstreit gegen die Emittentin oder in jedem Rechtsstreit, in dem der Gläubiger und die Emittentin Partei sind, seine Rechte aus diesen Schuldverschreibungen im eigenen Namen auf der folgenden Grundlage zu schützen oder geltend zu machen: (i) er bringt eine Bescheinigung der Depotbank bei, bei der er für die Schuldverschreibungen ein Wertpapierdepot unterhält, welche (a) den vollständigen Namen und die vollständige Adresse des Gläubigers enthält, (b) den Gesamtnennbetrag der Schuldverschreibungen bezeichnet, die unter dem Datum der Bestätigung auf dem Wertpapierdepot verbucht sind und (c) bestätigt, dass die Depotbank gegenüber dem Clearing System eine schriftliche Erklärung abgegeben hat, die die vorstehend unter (a) und (b) bezeichneten Informationen enthält; und (ii) er legt eine Kopie der die betreffenden Schuldverschreibungen verbriefenden Globalurkunde vor, deren Übereinstimmung mit dem Original eine vertretungsberechtigte Person des Clearing Systems oder des Verwahrers des Clearing Systems bestätigt hat, ohne dass eine Vorlage der Originalbelege oder der die Schuldverschreibungen verbriefenden Globalurkunde in einem solchen Verfahren erforderlich wäre. Für die Zwecke des Vorstehenden bezeichnet "Depotbank" jede Bank oder ein sonstiges anerkanntes Finanzinstitut, das berechtigt ist, das Wertpapierverwahrungsgeschäft zu betreiben und bei der/dem der Gläubiger ein Wertpapierdepot für die Schuldverschreibungen unterhält, einschließlich des Clearing Systems. Dessen ungeachtet kann jeder Gläubiger seine
(3) Enforcement. Any Holder of Notes may in any Proceedings against the Issuer, or to which such Holder and the Issuer are parties, protect and enforce in his own name his rights arising under such Notes on the basis of (i) a statement issued by the Custodian with whom such Holder maintains a Notes account in respect of the Notes (a) stating the full name and address of the Holder, (b) specifying the aggregate principal amount of Notes credited to such Notes account on the date of such statement and (c) confirming that the Custodian has given written notice to the Clearing System containing the information pursuant to (a) and (b) and (ii) a copy of the Note in global form certified as being a true copy by a duly authorised officer of the Clearing System or a depository of the Clearing System, without the need for production in such proceedings of the actual records or the global note representing the Notes. For purposes of the foregoing, "Custodian" means any bank or other financial institution of recognised standing authorised to engage in Notes custody business with which the Holder maintains a Notes account in respect of the Notes and includes the Clearing System. Each Holder may, without prejudice to the foregoing, protect and enforce his rights under the Notes also in any other way which is admitted in the country of the Proceedings.
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Rechte aus den Schuldverschreibungen auf jede andere Weise schützen und durchsetzen, die in dem Land der Rechtsstreitigkeit zulässig ist.
§ 14ÄNDERUNGEN DER ANLEIHEBEDINGUNGEN
UND GEMEINSAMER VERTRETER
§ 14AMENDMENTS OF THE CONDITIONS OF
ISSUE AND HOLDERS' REPRESENTATIVE
(1) Änderungen der Anleihebedingungen. Die Emittentin kann mit Zustimmung durch Mehrheits¬beschluss der Gläubiger nach Maßgabe des Gesetzes über Schuldverschreibungen aus Gesamtemissionen in seiner jeweiligen gültigen Fassung (Schuldverschreibungsgesetz – "SchVG") die Anleihebedingungen ändern. Die Gläubiger können insbesondere einer Änderung wesentlicher Inhalte der Bedingungen, einschließlich der in § 5 Absatz (3) SchVG vorgesehenen Maßnahmen mit Ausnahme der Ersetzung der Emittentin, die in § 10abschließend geregelt ist, mit den in dem nachstehenden § 14 Absatz (2) genannten Mehrheiten zustimmen. Die Mehrheitsbeschlüsse der Gläubiger sind für alle Gläubiger gleichermaßen verbindlich. Ein Mehrheitsbeschluss der Gläubiger, der nicht gleiche Bedingungen für alle Gläubiger vorsieht, ist unwirksam, es sei denn, die benachteiligten Gläubiger stimmen ihrer Benachteiligung ausdrücklich zu.
(1) Amendment of the Conditions of Issue. The Issuer may amend the Conditions of Issue with the consent by a majority resolution of the Holders pursuant to § 5 et seq. of the German Act on Issues of Debt Securities (Gesetz über Schuldverschreibungen aus Gesamtemissionen) (the "Bond Act"), as amended from time to time. In particular, the Holders may consent to amendments which materially change the substance of the Conditions of Issue, including such measures as provided for under § 5(3) of the Bond Act, but excluding a substitution of the Issuer, which is exclusively subject to the provisions in § 10, by resolutions passed by such majority of the votes of the Holders as stated under § 14(2) below. Majority resolutions shall be binding on all Holders. Resolutions which do not provide for identical conditions for all Holders are void, unless Holders who are disadvantaged have expressly consented to their being treated disadvantageously.
(2) Mehrheitserfordernisse. Die Gläubiger entscheiden mit einer Mehrheit von 75 % der an der Abstimmung teilnehmenden Stimmrechte. Beschlüsse, durch welche der wesentliche Inhalt der Anleihebedingungen nicht geändert wird und die keinen Gegenstand der § 5 Absatz (3), Nr. 1 bis Nr. 8 des SchVG betreffen, bedürfen zu ihrer Wirksamkeit einer einfachen Mehrheit der an der Abstimmung teilnehmenden Stimmrechte.
(2) Majority. Resolutions shall be passed by a majority of not less than 75 per cent. of the votes cast. Resolutions relating to amendments of the Conditions of Issue which are not material and which do not relate to the matters listed in § 5 para. 3, nos. 1 to 8 of the Bond Act require a simple majority of the votes cast.
(3) Abstimmung ohne Versammlung. Alle Abstimmungen werden ausschließlich im Wege der Abstimmung ohne Versammlung durchgeführt. Eine Gläubigerversammlung und eine Übernahme der Kosten für eine solche Versammlung durch die Emittentin findet ausschließlich im Fall des § 18 Absatz (4), Satz 2 SchVG statt.
(3) Vote without a meeting. All votes will be taken exclusively by vote taken without a meeting. A meeting of Holders and the assumption of the fees by the Issuer for such a meeting will only take place in the circumstances of § 18 para. 4, sentence 2 of the Bond Act.
(4) Leitung der Abstimmung. Die Abstimmung wird von einem von der Emittentin beauftragten Notar oder, falls der Gemeinsame Vertreter (wie in Absatz (6) definiert) zur Abstimmung aufgefordert hat, vom Gemeinsamen Vertreter geleitet.
(4) Chair of the vote. The vote will be chaired by a notary appointed by the Issuer or, if the Holders' Representative (as defined in subparagraph (6)) has convened the vote, by the Holders' Representative.
43
(5) Stimmrecht. An Abstimmungen der Gläubiger nimmt jeder Gläubiger nach Maßgabe des Nennwerts oder des rechnerischen Anteils seiner Berechtigung an den ausstehenden Schuldverschreibungen teil.
(5) Voting rights. Each Holder participating in any vote shall cast votes in accordance with the principal amount or the notional share of its entitlement to the outstanding Notes.
(6) Gemeinsamer Vertreter. Die Gläubiger können durch Mehrheitsbeschluss zur Wahrnehmung ihrer Rechte einen gemeinsamen Vertreter für alle Gläubiger (der "Gemeinsame Vertreter") bestellen.
(6) Holders' Representative. The Holders may by majority resolution appoint a common representative (the "Holders' Representative") to exercise the Holders' rights on behalf of each Holder.
Der Gemeinsame Vertreter hat die Aufgaben und Befugnisse, welche ihm durch Gesetz oder von den Gläubigern durch Mehrheitsbeschluss eingeräumt wurden. Er hat die Weisungen der Gläubiger zu befolgen. Soweit er zur Geltendmachung von Rechten der Gläubiger ermächtigt ist, sind die einzelnen Gläubiger zur selbständigen Geltendmachung dieser Rechte nicht befugt, es sei denn, der Mehrheits-beschluss sieht dies ausdrücklich vor. Über seine Tätigkeit hat der Gemeinsame Vertreter den Gläubigern zu berichten. Für die Abberufung und die sonstigen Rechte und Pflichten des Gemeinsamen Vertreters gelten die Vorschriften des SchVG.
The Holders' Representative shall have the duties and powers provided by law or granted by majority resolution of the Holders. The Holders' Representative shall comply with the instructions of the Holders. To the extent that the Holders' Representative has been authorised to assert certain rights of the Holders, the Holders shall not be entitled to assert such rights themselves, unless explicitly provided for in the relevant majority resolution. The Holders' Representative shall provide reports to the Holders on its activities. The provisions of the Bond Act apply with regard to the recall and the other rights and obligations of the Holders' Representative.
(7) Gerichtsstand. Für Entscheidungen gemäß §§ 9 Absatz (2), 13 Absatz (3) und 18 Absatz (2) SchVG ist gemäß § 9 Absatz (3)SchVG das Amtsgericht zuständig, in dessen Bezirk die Emittentin ihren Sitz hat. Für Entscheidungen über die Anfechtung von Beschlüssen der Gläubiger ist gemäß § 20 Absatz 3 SchVG das Landgericht ausschließlich zuständig, in dessen Bezirk die Emittentin ihren Sitz hat.
(7) Submission to Jurisdiction. The court of the district where the Issuer has its registered office shall have jurisdiction for all judgments pursuant to §§ 9(2), 13(3) and 18(2) Bond Act in accordance with § 9(3) Bond Act. The regional court (Landgericht) in the district where the Issuer has its registered office shall have exclusive jurisdiction for all judgments over contested resolutions by Holders Bond Act in accordance with § 20(3) Bond Act.
§ 15SPRACHE
§ 15LANGUAGE
Diese Anleihebedingungen sind in deutscher Sprache abgefasst. Eine Übersetzung in die englische Sprache ist beigefügt. Der deutsche Text ist bindend und maßgeblich. Die Übersetzung in die englische Sprache ist unverbindlich.
These Conditions of Issue are written in the German language and provided with an English language translation. The German text shall be controlling and binding. The English language translation is provided for convenience only.
44
DESCRIPTION OF OTTO (GMBH & CO KG)
1. AUDITORS
KPMG AG Wirtschaftsprüfungsgesellschaft, Michaelis Quartier, Ludwig-Erhard-Straße 11-17, 20459
Hamburg, Germany (hereinafter referred to as "KPMG"), was appointed as the statutory auditor of the
Issuer for fiscal years ended 28 February 2011 and 28 February 2010. KPMG audited the consolidated
financial statements of the Issuer as of and for the fiscal years ended 28 February 2011 and 28 February
2010 and issued unqualified auditor´s reports (uneingeschränkte Bestätigungsvermerke) in each case.
KPMG is a member of the Chamber of Public Accountants (Wirtschaftsprüferkammer), Rauchstrasse 26,
10787 Berlin, Germany.
2. GENERAL INFORMATION ABOUT THE ISSUER
INCORPORATION, REGISTRATION, REGISTERED OFFICE AND LEGAL FORM
Otto (GmbH & Co KG) was established on 17 August 1949 under German law by Prof. Dr. h.c. Werner
Otto initially as a sole proprietorship and has been conducted in the legal form of a German
Kommanditgesellschaft (limited partnership) since the beginning of the 1960s. The partnership's name
was changed from Otto Versand GmbH & Co to Otto (GmbH & Co KG) by partners' resolution of 2
September 2002. The registration of the change of the partnership's name in the commercial register
was effected on 8 October 2002. Otto is incorporated in Germany and was established under German
law for an indefinite term and is registered with the commercial register of Hamburg under HRA 62024.
Otto is operating under the legal name of "Otto (GmbH & Co KG)" and under the commercial name of
"OTTO".
The corporate seat of the Issuer is Hamburg. The address of the head office is Wandsbeker Straße 3-7,
22172 Hamburg, telephone number: +49 (40) 6461-0.
The fiscal year of Otto (GmbH & Co KG) starts on 1 March of each year and ends on the last day of
February of the following year.
In accordance with German law, the "Gesellschaft mit beschränkter Haftung & Compagnie
Kommanditgesellschaft (GmbH & Co KG)" is a special form of a limited partnership and hence a
partnership. In contrast to a typical limited partnership the sole general partner is a limited liability
company instead of a natural person. Shareholders of the general partner (Komlementärin) of the Issuer,
the "Verwaltungsgesellschaft Otto mbH" (the "General Partner"), are the limited partners
(Kommanditisten) of the Issuer.
A. CORPORATE OBJECTS
In accordance with Article 2 of its partnership agreement, the corporate purpose of the Issuer is the mail-
order selling of goods and services of all kinds, retailing within the framework of officially granted
authorisations and the serial production of goods offered, excluding mechanical manufacturing. In order
to achieve these purposes, the Issuer is entitled to set up, acquire or participate in similar companies or
companies of the same kind.
B. LIMITED LIABILITY CAPITAL (KOMMANDITKAPITAL) OF THE ISSUER
On 28 February 2011, the limited liability capital (Kommanditkapital) of the Issuer amounted to
EUR 770,000,000, held by the limited partners (Kommanditisten).
OWNERSHIP STRUCTURE OF THE LIMITED LIABILITY CAPITAL (KOMMANDITKAPITAL) OF
THE ISSUER
Limited Partners (Kommanditisten) of the Issuer are:
OTTO Aktiengesellschaft für Beteiligungen
These companies hold directly 100
Beneficial owner of the
3. ORGANISATIONAL STUCT
As the (operating) holding company
Otto Group
Multichannel retail comprises Otto Group
channels: the catalogue business, e
traditional
constitutes the historical core busi
e-Commerce business. Apart from conducting its own full
performs management and control functions within the Otto Group and is responsible for sup
Otto Group
markets.
4. BUSINESS OVERVIEW
A. CORE BUSINESS, MOST IMPORTANT MARKETS
Founded in 1949, the Otto Group now is a worldwide
approximately 50,000 employees. The Group consists of 123
countries. It is organised into three business segments: Multichannel Retail, Financial Services and
Services.
GS Gesellschaft für Versand
Kommanditgesellschaft AURUM Beteiligungs
These companies hold directly 100
Beneficial owner of the
ORGANISATIONAL STUCT
As the (operating) holding company
Otto Group's operating companies. The Otto Group operates primarily in the multichannel retail business.
Multichannel retail comprises Otto Group
channels: the catalogue business, e
traditional mail-order business with about 60 different catalogues. The traditional
constitutes the historical core busi
Commerce business. Apart from conducting its own full
performs management and control functions within the Otto Group and is responsible for sup
Otto Group's business strategy by managing its participations and providing access to the capital
markets.
BUSINESS OVERVIEW
CORE BUSINESS, MOST IMPORTANT MARKETS
Founded in 1949, the Otto Group now is a worldwide
approximately 50,000 employees. The Group consists of 123
countries. It is organised into three business segments: Multichannel Retail, Financial Services and
Services.
GS Gesellschaft für Versand
Kommanditgesellschaft AURUM Beteiligungs
These companies hold directly 100
Beneficial owner of the Issuer is the Otto family with an interest of more than 98
ORGANISATIONAL STUCTURE
As the (operating) holding company
s operating companies. The Otto Group operates primarily in the multichannel retail business.
Multichannel retail comprises Otto Group
channels: the catalogue business, e
order business with about 60 different catalogues. The traditional
constitutes the historical core busi
Commerce business. Apart from conducting its own full
performs management and control functions within the Otto Group and is responsible for sup
s business strategy by managing its participations and providing access to the capital
BUSINESS OVERVIEW
CORE BUSINESS, MOST IMPORTANT MARKETS
Founded in 1949, the Otto Group now is a worldwide
approximately 50,000 employees. The Group consists of 123
countries. It is organised into three business segments: Multichannel Retail, Financial Services and
GS Gesellschaft für Versand-Beteiligungen m.b.H.
Kommanditgesellschaft AURUM Beteiligungs
These companies hold directly 100 % of the limited partnership interests.
is the Otto family with an interest of more than 98
URE
As the (operating) holding company the Issuer
s operating companies. The Otto Group operates primarily in the multichannel retail business.
Multichannel retail comprises Otto Group's commercial activities conducted through various
channels: the catalogue business, e-commerce, and over
order business with about 60 different catalogues. The traditional
constitutes the historical core business of the Otto Group which is nowadays substituted by the growing
Commerce business. Apart from conducting its own full
performs management and control functions within the Otto Group and is responsible for sup
s business strategy by managing its participations and providing access to the capital
CORE BUSINESS, MOST IMPORTANT MARKETS
Founded in 1949, the Otto Group now is a worldwide
approximately 50,000 employees. The Group consists of 123
countries. It is organised into three business segments: Multichannel Retail, Financial Services and
45
Beteiligungen m.b.H.
Kommanditgesellschaft AURUM Beteiligungs- und Verwaltungs
of the limited partnership interests.
is the Otto family with an interest of more than 98
the Issuer holds directly or indirectly the respective interest of the
s operating companies. The Otto Group operates primarily in the multichannel retail business.
s commercial activities conducted through various
commerce, and over
order business with about 60 different catalogues. The traditional
ness of the Otto Group which is nowadays substituted by the growing
Commerce business. Apart from conducting its own full
performs management and control functions within the Otto Group and is responsible for sup
s business strategy by managing its participations and providing access to the capital
CORE BUSINESS, MOST IMPORTANT MARKETS
Founded in 1949, the Otto Group now is a worldwide
approximately 50,000 employees. The Group consists of 123
countries. It is organised into three business segments: Multichannel Retail, Financial Services and
Beteiligungen m.b.H.
und Verwaltungs
of the limited partnership interests.
is the Otto family with an interest of more than 98
holds directly or indirectly the respective interest of the
s operating companies. The Otto Group operates primarily in the multichannel retail business.
s commercial activities conducted through various
commerce, and over-the-counter retail.
order business with about 60 different catalogues. The traditional
ness of the Otto Group which is nowadays substituted by the growing
Commerce business. Apart from conducting its own full-line mail
performs management and control functions within the Otto Group and is responsible for sup
s business strategy by managing its participations and providing access to the capital
Founded in 1949, the Otto Group now is a worldwide-operating trade and servi
approximately 50,000 employees. The Group consists of 123 significant
countries. It is organised into three business segments: Multichannel Retail, Financial Services and
und Verwaltungs-G.m.b.H. &
of the limited partnership interests.
is the Otto family with an interest of more than 98 %
holds directly or indirectly the respective interest of the
s operating companies. The Otto Group operates primarily in the multichannel retail business.
s commercial activities conducted through various
counter retail. The Issuer
order business with about 60 different catalogues. The traditional
ness of the Otto Group which is nowadays substituted by the growing
line mail-order business,
performs management and control functions within the Otto Group and is responsible for sup
s business strategy by managing its participations and providing access to the capital
operating trade and servi
significant companies and operates in 20
countries. It is organised into three business segments: Multichannel Retail, Financial Services and
G.m.b.H. & Co.
.
holds directly or indirectly the respective interest of the
s operating companies. The Otto Group operates primarily in the multichannel retail business.
s commercial activities conducted through various distribution
The Issuer operates in the
order business with about 60 different catalogues. The traditional mail-order business
ness of the Otto Group which is nowadays substituted by the growing
order business, the Issuer
performs management and control functions within the Otto Group and is responsible for supporting the
s business strategy by managing its participations and providing access to the capital
operating trade and services group with
companies and operates in 20
countries. It is organised into three business segments: Multichannel Retail, Financial Services and
holds directly or indirectly the respective interest of the
s operating companies. The Otto Group operates primarily in the multichannel retail business.
distribution
operates in the
order business
ness of the Otto Group which is nowadays substituted by the growing
the Issuer also
porting the
s business strategy by managing its participations and providing access to the capital
ces group with
companies and operates in 20
countries. It is organised into three business segments: Multichannel Retail, Financial Services and
46
Revenues of the Otto Group in the fiscal year 2010/11 (to 28 February 2011) amounted to EUR 11,404
million. Total assets aggregated to EUR 7,718 million. Around 42 % of sales were generated outside
Germany.
Out of the three segments of the Otto Group, Multichannel Retail is the core business. Multichannel
Retail comprises Otto Group's commercial activities conducted through various distribution channels: the
catalogue business, e-commerce, and over-the-counter retail. Financial Services and Services offer
general services in particular along the value chain of retail companies. The segment Services provides
mainly logistics and travel services.
The segment Multichannel Retail pools domestic and international companies that offer their
merchandise via the various distribution channels: catalogue business, e-commerce, and over-the-
counter retail.
The segment Financial Services offers a broad range of financial services, along the value chain of retail
companies such as debt collection, information management, receivable management as well as liquidity
management.
The companies of the Services segment enable the Otto Group to provide a complete retail services
portfolio. This includes a broad range of services along the logistics value chain from procurement to
distribution and marketing. As of 1 January 2012 Otto Group sold 49 % of its stake in its Otto Freizeit und
Touristik (OFT) holding to VR meine Raiffeisenbank Altötting-Mühldorf which resulted in the
deconsolidation of OFT. A 50 % stake in Otto Media, a joint venture with the Bertelsmann Group, is not
part of this deal. OFT's activities are not among the Otto Group's core business activities.
The Otto Group acts in the three major economic regions Europe, Asia and North America. In 2011 Otto
Group entered the Brasilian market. The strategic goal to offer a wide range of services for the
customers resulted in a diversification exceeding the core business multichannel retail. The
diversification and the internationalisation of the Otto Group started in the mid 1970's when a variety of
investments, joint ventures and strategic partnerships turned the Otto Group into a globally operating
group.
As retail business requires adaptation to local circumstances, local Group companies act with a relatively
high degree of autonomy to assure both flexibility and a close customer relationship as well as good
target group appeal in the respective country.
More and more, Otto Group customers use not only shopping via catalogue or internet-based e-
commerce but also over-the-counter or via mobile phone order. Customers even combine two or more of
the different offers from the available distribution channels.
As a multichannel retailer, the Otto Group offers a variety of purchasing opportunities in the different
distribution channels: around 50 e-commerce shops receive almost 700 millions hits per year, the
relevant merchandise can be ordered via around 2,000 different catalogues or can be bought in more
than 400 retail stores. These different possibilities are supported by the services along the value chain.
Up-to-date storage systems combined with sorting systems and Group-owned delivery systems ensure a
smooth processing. Hermes Logistic Group is able to deliver within 24 hours or at any later point in time
if requested by the customer. In addition, the Otto Group offers its customers financial services, e.g. the
payment in up to 48 monthly installments or deferred billing in case of payment by credit card.
Multichannel-Retail
Multichannel Retail contributed EUR 10,004 million, representing 87.7 % of consolidated revenue in
2010/11.
The market position of Otto Group is based on a number of family brands. Besides Otto, the Group uses
Sportscheck, Schwab, Heine, Bonprix, Baur in Germany. Examples for international family brands of the
47
Otto Group are 3 Suisses International in France, Crate and Barrel in the U.S. and Grattan and
Freemans in the UK. Some of the German family brands have already been introduced to other countries
like Otto, Witt and Bonprix to Russia.
E-commerce has been the major revenue driver in recent years and is the main source of growth of this
segment. Online sales grew in the fiscal year 2010/11 by 25 %. In total, the Otto Group achieved an
online demand (customer orders at sales prices) of EUR 4.8 billion in 2010/11. Worldwide, the Otto
Group sees itself as the largest B2C online vendor of fashion and lifestyle and the number two vendor
behind Amazon. In Germany, it has consolidated its leading position as a large e-commerce provider
(B2C).
The Otto Group intensifies the strategic expansion of its e-commerce portfolio consistently. With the
launch of Smatch.com in 2008, a new shopping community in the areas of fashion, home and lifestyle
has been established. In October 2008, the Otto Group announced the formation of the holding company
eVenture Capital Partners. eVenture Capital Partners offers the possibility for co-operations between
third parties and companies of the Otto Group. eVenture Capital Partners offers selected companies, a
so-called "Seed" or "Early Stage" financing, i.e. the necessary capital equipment for the critical early
growth phase. The Otto Group complemented in early 2009 its e-commerce portfolio with the acquisition
of Limango, a company operating a private shopping community.
Although the Otto Group sees itself as already highly diversified, it intends to increase retail store sales.
These include, amongst others, the stores of the brands Bonprix, Crate and Barrel, Land of Nod,
Sportscheck, Lascana and mytoys.
Since 2006, Otto Group is also active in the Russian market. The Otto Group offers products Russia-
wide by use of the brands OTTO, Bonprix and Witt. The three brands target different groups of
consumers, similar to their focus in the German market. In 2008, Otto Group acquired the three core
business areas of the mail-order group Nadom, including its logistics company Promopost. In addition,
Otto Group took over the complete business of the mail-order company Quelle Russia in November
2009.
The following table shows the contribution of the various business lines to the overall revenues of the
multichannel retail business segment and the number of persons employed:
Revenues (in € million) Employees (average)
2010/11 2009/10 2010/11 2009/10
Multichannel Retail 10,004 8,921 30,023 29,751
Thereof:
Otto 2,114 1,864 3,864 3,791
Schwab Group 464 414 1,142 1,407
Baur Group 573 468 2,596 2,348
Heine Group 666 632 1,854 1,894
Bonprix Group 1,136 972 2,017 1,807
Sportscheck 327 277 1,032 938
3 Suisses International Group 1,952 1,907 6,828 7,210
Crate and Barrel Group 1,061 927 5,271 5,254
Freemans Grattan Holdings 199 265 1,194 2,085
Witt Group 629 572 1,795 1,706
Otto Group Russia (Retail) 349 183 728 248
48
Retail companies in Germany
The full-line mail-order business in Germany is presently represented by Otto, Baur and Schwab. While
Otto focuses on younger fashion-oriented customers, Schwab targets the entire family emphasizing the
specialised concept of Sheego and Baur concentrates prospectively on the assortments fashion, shoes
and furniture.
Otto
Otto's core target group consists of women aged between 25 and 45, families, and people over 45.
Against the background of rising intensity of competition in the traditional catalogue business, high
growth rates in e-commerce have compensated declining catalogue revenues. The increasing
transparency enabled by web-based retailing requires e-commerce providers to be open to new and
unconventional ways of presenting themselves. The online business generates about two-thirds of total
revenues, and is growing steadily. Otto’s online shop is characterised by a wide range of brands, simple
order processing and excellent customer service. Beyond these aspects, the one-stop-shopping platform
otto.de is especially focused on its customers' need for privacy protection and an easy return service.
The retail company has repeatedly been voted Germany's most popular online shop with the best level of
service. Otto uses social media to communicate with customers as well as employees. The company is
open to new concepts. For instance, since the beginning of 2011, the online shop refashion.de allows
friends to go on a virtual shopping trip together on social networks.
The Otto Group also acquired the rights to the Quelle brand for Germany and other Central and Eastern
European countries. Since 2011 quelle.de has been established as an online marketplace focusing on
electronics and furniture.
Among the websites of Otto are:
www.otto.de
www.brandneu.de
www.smatch.com
www.quelle.de
Schwab Group
SCHWAB VERSAND GmbH ("Schwab") was founded in 1954 by the merchandiser Friedrich Schwab.
Since 1976, Otto is the majority shareholder of Schwab and owns now nearly 100 % of the shares. The
distance seller also exports its range to 30 countries around the world. E-commerce is a rapidly growing
addition to the traditional catalogue business.
Schwab is becoming increasingly specialised in larger-size ladies' fashion under the name of Sheego.
The first Sheego catalogue was distributed at the end of December 2008 and the sheego.de website was
launched at the same time. In the process, the fashion company has closed a market gap and opened up
a previously unavailable world of fashion for plus-size women.
Joseph Witt GmbH ("Witt"), parent company of the Witt Group, has been part of the Otto Group since
1987. Germany's oldest mail-order company specialised in textiles operates as well in Austria, in
Switzerland and in Russia. The experience gained with the brand in over a century also benefits the
group's new brands Sieh an!, creation L, ambria and wäschepur.
Witt is expanding into new markets through a variety of collaborations. Its objective is to be Europe's
leading specialist mail-order retailer of textiles for the 50+ age group.
As an internet start-up originating from the late 1990´s, myToys.de GmbH has been showing huge
growth in e-commerce. myToys is a specialist for toys and children clothing in the internet. The Otto
Group has owned a majority stake since 2000. Apart from the German shop, there are French and
49
Russian shops, and an English-language shop. In Germany, parents and children can also shop at more
than ten myToys stores. An annual catalogue rounds off myToys.de's status as a multichannel vendor.
Among the websites of Schwab are:
www.schwab.de
www.sheego.de
www.myToys.de, myToys.fr, myToys.ru, myToys.com.
www.witt-weiden.com, www.witt-international.co.uk, www.witt-international.fr
www.ambria.de
www.creation-l.de
www.sieh-an.de
Baur Group
Baur Versand (GmbH & Co KG) ("Baur"), based in Burgkunstadt, Germany, was founded by
Dr. Friedrich Baur as Germany's first mail-order shoe company in 1925. In 1997, the Otto Group gained
control by acquiring an equity interest of 49 % in Baur, which is still the current shareholding. Sole
shareholder of the general partner of Baur is Otto. The step-by-step implementation of the new business
model intends to refocus the full-line catalogue business on its core competences - fashion, shoes and
furniture. In addition, as a multi-channel retailer, Baur is engaged in e-commerce and in over-the-counter
retail.
Baur is the majority owner of UNITO Versand & Dienstleistungen GmbH ("Unito"), Graz. Minority
shareholder is Schwab. Unito sells selected merchandise under the brands Universal, Otto and Quelle by
catalogues and by e-commerce in Austria and Switzerland.
The online mail-order shoe business Mirapodo has been offering a vast selection of shoes for every
occasion and in a variety of looks – from classic to offbeat – since 2009. Mirapodo developed a special
'shoe compass' for online fitting. It automatically checks whether the desired shoe fits the customer's
foot.
Among the websites of Baur are:
www.baur.de
www.unito.at
www.mirapodo.de
www.quelle.at
www.ackermann.ch
Heine Group
Heinrich Heine GmbH ("Heine"), Karlsruhe, was founded by Heinrich Heine in 1951. Since 1981, Heine
has been fully integrated into the Otto Group as sole owner of the Heine Group. Heine serves the high-
end segments of the fashion and furniture markets.
Alba Moda GmbH ("Alba Moda"), Bad Salzuflen, was acquired by Heine in the second half of the
1980´s. Alba Moda sells up-market fashion assortments for women and men not only in Germany, but
also in Austria and Switzerland.
At the beginning of 2008, Heine fully acquired Manufactum GmbH & Co. KG ("Manufactum"), Waltrop,
to broaden its positioning in the high-end life-style market.
Frankonia is the European market leader for hunting equipment. Frankonia now operates 27 retail
stores. In addition to over-the-counter stores, Frankonia offers its range through catalogues and online.
The Frankonia Card, introduced in 2011, lets customers shop at Frankonia on all channels, without cash
and on reasonable terms.
50
Among the websites of the Heine Group are:
www.heine.de, www.heine.ch, www.heine.at, www.helline.fr
www.manufactum.de,
www.albamoda.de
www.frankonia
Bonprix Group
Bonprix Handelsgesellschaft mbH ("Bonprix"), Hamburg, was established by the Otto Group in 1986.
Bonprix sells fashion, textiles and accessories to very price-conscious customer groups by mail-order, e-
commerce and in retail stores. Bonprix operates in Germany, France, Italy and Central-Eastern Europe.
Bonprix branded merchandise is also sold in Russia. Since the 1990s, the company has pursued a
multichannel strategy – a mix of catalogues, branded stores in Germany, Italy, Austria and Switzerland,
and e-commerce. Over the past few years, its Web shop bonprix.de has developed into the company's
main sales channel, and is now one of Germany's Top 10 online shops.
Among the websites of Bonprix are:
www.bonprix.de
www.bonprix.it
www.bonprix.fr
www.bonprix.pl
www.bonprix.dk
www.bonprix.se
Sportscheck
Sport Scheck GmbH ("Sportscheck"), Munich, became a minority participation of the Otto Group in
1988, and a wholly-owned subsidiary in 1991. Sportscheck, founded in 1946, is today one of Germany's
biggest retailers of sportswear and accessories. Sportscheck sells a wide range of sportswear and
leasure wear in 16 stores in Germany, as well as via Internet and catalogue.
Among the websites of sportscheck is:
www.sportscheck.com
Retail companies outside Germany
3 Suisses International
3 SUISSES INTERNATIONAL S.A. ("3SI"), Croix, France, is the holding company of a group which
originates from a company established in 1932. Otto acquired a minority interest in 3SI in 1974. This was
the first cross-border investment of the Otto Group. Later on the share in 3SI was increased to 51 %,
which is still the current shareholding. 3SI Group engages in all business segments covered by Otto
Group, i.e. multichannel retail, financial services and services.
Merchandise offered by the various Group companies via catalogue and internet ranges from specialised
assortments in fashion and gifts to full-line assortments. Family brands of the 3SI Group are Le
Chouchou, Blanche Porte, Vitrine Magique, Becquet and Unigro. In addition, 3SI operates B2B activities
selling office products under the brands JM Bruneau and Otto Office.
3 Suisses International Group's business activities include multichannel retail, services and financial
services in 16 countries across Europe and Asia. Mondial Relay organises the delivery of parcels to
customers of 3 Suisses International Group companies and other companies outside the Group.
Among the websites of 3 Suisses are:
www.3suisses.com, www.3suisses.fr, www.3suisses.it, www.3suisses.de
www.jm-bruneau.fr
51
www.blancheporte.fr
www.mondialrelay.com
Crate and Barrel Group
Founded in 1962, Crate and Barrel Holdings, Inc. ("Crate and Barrel") has built-up a family brand for
household goods, furniture as well as for home accessories in the Unites States. In 1998, the Otto Group
acquired a controlling interest (72.5 %) in Crate and Barrel Holdings, Chicago, Illinois. Since 2011 the
Otto Group holds all voting common stock. Since 1998, the company has significantly expanded its
activities through additional retail stores and as well as in the catalogue business and the internet. Since
2003, the entire assortment can be ordered online. The successful launch of the additional CB2 store
concept in 2000 is complemented by catalogues since 2006. CB2 offers affordable designer furniture and
trendy accessories and is aimed at younger, more price-conscious customers. Crate and Barrel operates
164 stores all over the United States as well as in Canada. Crate and Barrel has an additional presence
in Dubai through a franchise concept.
Among the websites of Crate and Barrel are:
www.crateandbarrel.com
www.cb2.com
www.landofnod.com
Freemans Grattan Holdings
Freemans PLC ("Freemans") founded in 1905 and Grattan PLC ("Grattan") founded in 1912, are
multichannel retailers based in Bradford, United Kingdom. The Otto Group acquired a controlling interest
in Grattan in 1991 which was increased to 100 % in 1996. The entirety of shares in Freemans were
acquired in 1999. Subsequently, the administration of the two businesses was merged under the roof of
Freemans Grattan Holdings Limited ("FGH") in 2000. Both companies offer a broad assortment of
merchandise ranging from fashionable clothing to household goods within the UK to different target
groups via catalogue, internet and agents.
Among the websites of the Freemans Grattan Group are:
www.freemans.com
www.grattan.co.uk
www.lookagain.co.uk
www.kaleidoscope.co.uk
Otto Group Russia
The Otto Group has been active on the Russian market since 1990. In 2006 the Otto Group set up Direct
Catalogue Services (DCS) marketing the brands OTTO, bonprix and Witt. In 2008, a central warehouse
opened its doors in Tver, 150 km northwest of Moscow, to hold stock for the Russian market. By autumn
2008, the Otto Group had become Russia's leading mail-order company, having acquired the Nadom
Group and its three brands Home, Meggy Mall and Health & Beauty from Russia's Direct Group, along
with Nadom's logistics operator PromoPost.
In November 2009, the Otto Group took over the complete business of the mail-order company Quelle
Russia. The acquired trademark rights include the use of the brands, logos, images and most of the
internet domains. Quelle has been operating in the Russian market for several years with catalogues and
e-commerce. Its range of products – similar to the Otto Group – focused on fashion, shoes and home
textiles.
Among the websites in Russia are:
www.otto-online.ru
www.bonprix.ru
www.witt-international.ru
52
www.meggymall.ru
www.quelle.ru
Financial Services
The segment covers an international portfolio of financial services. The companies bundled in this
segment offer their customers not only commercial services along the value chain of retail companies
(B2C), but also B2B-services for banks and other financial institutions (e.g. insurance companies) or
other companies outside the retail business. Main lines of such B2B services are information, brokerage,
receivables and liquidity management services as well as debt collection services. The Financial
Services segment is largely covered by the companies of the internationally operating EOS Group. In
addition, the Otto Group holds non-controlling interests in the Hanseatic Bank and the Cofidis Group,
which are specialised in consumer debt and closely related to multichannel retail. The third-party
business to customers outside the Otto Group generated more than 93 % of the segment's overall
business volume.
The increasing internationalisation has lead to rising revenues in the Financial Services segment. The
Otto Group intends to strengthen its market position in financial services in particular by a regional
expansion especially in France and South America.
Revenues (in € million) Employees (average)
2010/11 2009/10 2010/11 2009/10
Financial Services 455 388 5,111 4,499
Thereof:
EOS Group 341 282 4,677 4,081
EOS Group
EOS Group, i.e. Kommanditgesellschaft EOS Holding GmbH & Co, Hamburg and its subsidiaries,
originates from a spin-off of the debt collection department of Otto in 1974. Based on Otto's analysis the
EOS Group is among the leading international service providers in receivables management. Ultimate
holding company of the EOS Group is Kommanditgesellschaft EOS Holding GmbH & Co, Hamburg.
With more than 40 companies in over 20 countries in Europe, North America and Asia the EOS Group
offers its clients up-to-date financial services. The services encompass the entire value chain: whether
solvency checks, factoring, debt purchase or debt collection – the EOS Group optimises the credit and
risk management. The EOS Group has more than 20,000 customers worldwide. EOS services are
tailored e.g. for large insurance companies, banks, credit card companies, leasing companies, utilities,
industrial and trading companies as well as publishing houses and mail-order companies. The EOS
Group continued to grow its revenue in 2010/11. Besides the continuing improvement in the segment's
competitive position, the rise was primarily due to the group's regional expansion.
Having acquired 100 % of the shares in the American company True North AR, LLC, the EOS Group
has continued its expansion strategy in the USA in 2010/11. The company is one of the leading providers
of healthcare revenue cycle solutions as well as a provider of pre- and post-write-off debt collection
services to public bodies. As such, it supplements the existing expertise of EOS's American subsidiary
Collecto Inc. The Spanish company Eos Acción de Cobro España S.A.U., acquired in 2009, was fully
included in the annual accounts of the EOS Group for the first time in 2010/11, making a considerable
contribution to the increase in revenue for the western Europe region.
In April 2011, the EOS group acquired a 100 % stake in Credirec Finance SAS, Paris, France.
53
As of 15 June 2011, the EOS group acquired 60 per cent of the shares in Hoepers Recuperadora de
Crédito S.A., one of the top three debt collection companies in Brazil.
Among the websites of EOS Group are:
www.eos-solutions.com
3 Suisses International Group / Cofidis Group
Cofidis group is a large group of consumer finance companies in Europe. In 2009/10, an agreement was
concluded between the Otto Group and the French cooperative bank Banque Fédérative du Crédit
Mutuel, Strassbourg, France, (Crédit Mutuel) relating to the sale of shares in Cofidis Participations S.A.
Croix, France. The Otto Group remains a shareholder in Cofidis through the holding company 3 Suisses
International with a share of 57 %. Because of its capacity to manage the business, Crédit Mutuel took
control of Cofidis Participations S.A. and its subsidiaries in Argentina, Belgium, the Czech Republic,
France, Italy, Romania, Slovakia and Spain. The Otto Group continues to exercise influence on the
strategic financial and business policies of the Cofidis Group and therefore includes Cofidis in its
consolidated financial statements, using the equity method.
Hanseatic Bank
Hanseatic Bank GmbH & Co KG, Hamburg ("Hanseatic Bank"), a bank with a full banking license, was
established by Otto in 1969 to provide consumer credits to mail-order customers. The Otto Group sold
75 % of the shares to Société Générale in 2005 in order to expand the product portfolio under this
strategic partnership. Currently, Otto's stake in Hanseatic Bank is 25 %.
Services
Companies bundled in the Services segment ensure that the Otto Group performs the full range of
trading services, from sourcing and end-to-end logistics through to sales. The segment also includes the
Otto Group's travel services providers. In 2010/11, the segment achieved revenues of EUR 945.0 million,
representing 8.3 % of the Group's total revenues.
The logistics service providers support the Otto Group's multichannel retail businesses and have also
established themselves as independent logistics service providers in the marketplace. The Hermes
Group handles more than one million deliveries to private households in Europe every day through its
selection of parcel services, delivery of furniture and bulky items as well as mail services. Warehousing
and integrated solutions in the area of global logistics procurement completes the Services portfolio.
By founding Hermes Versandservice in 1972 the Otto Group set the base for a continuous growing
logistic group. Today, Hermes Logistik Gruppe Deutschland GmbH ("HLGD"), Hamburg, as a part of the
group headed by Hermes Europe GmbH, Hamburg, delivers nearly every third B2C or C2C package in
Germany. With around 14,000 Hermes parcel shops, HLGD has Germany's largest network for receiving
private parcel shipments (based on Otto Group’s own market analysis). Owning Hermes Europe the Otto
Group has a pan-European specialist in parcel deliveries to private households at hand. Logistic
operations are not only provided for retail companies within the Otto Group, but also for some well-known
companies in Europe, e.g. for QVC, Hennes&Mauritz, Deutsche Bahn, Lands End, Tom Tailor and
others. In 2011/12 roughly half of the revenues are generated through third-party business.
Mondial Relay S.A.S. in France has special expertise in on-time delivery of heavy and bulky parcels,
and 24-hour delivery to its 3,500 relay points. Its two parcels sorting centers ensure daily and immediate
shipment. Distribution is carried out via 20 hubs throughout France. Mondial Relay also maintains
operations in Belgium, Luxembourg, Spain and Portugal.
Thanks to its close collaboration with Hermes Parcelnet Limited in the UK, Mondial Relay S.A.S.in
France and HERMES PORTA A PORTA S.P.A. in Italy, Hermes has already established itself on the
key European markets. Hermes Parcelnet Limited has specialised in shipping B2C parcels to private
54
households in the UK, moving roughly 115 million consignments annually. Mondial Relay S.A.S.has
over 6,000 parcel shops in France, Portugal, Spain and Belgium and ships more than 40 million parcels
annually. HERMES PORTA A PORTA S.P.A. concentrates on B2C parcel distribution in Italy. Its network
includes a hub in Milan, a cross-docking platform in Rome, 65 depots and over 1,000 drivers.
In the logistics centre in Tver, OOO BUSINESS SERVICE manages all processes for the Russian
business, from importing the goods, warehouse storage, order acceptance and processing through to
packing and dispatch. OOO PROMOPOST provides a full range of warehousing services including order
picking and returns processing and customer centre services.
Hermes Fulfilment GmbH ("Hermes Fulfilment") completes the range of services. It provides the
smooth handling of all parts of the process, from the receipt of products in Europe, through to processing
and contact with the end consumer, including customised preparation of goods for specific clients,
labelling, picking and packing, shipment and return processing. Thanks to a special warehousing
concept, Hermes Fulfilment is adept at efficiently processing virtually all combinations of goods from
small items through to a broad range of bulky items. For the initial or follow-up stocking of branch stores,
as well as for distance selling, Hermes Fulfilment draws on the benefits of tried-and-tested, highly-
automated processes.
The Hermes Hansecontrol Group is an international group of certified testing institutes for quality
assurance. The Hermes Hansecontrol Group comprises the independent companies Prüfinstitut
Hansecontrol GmbH and Hansecontrol Zertifizierungsgesellschaft mbH (Hansecontrol-CERT) which is a
legally authorized GS testing institute. These international companies examine products in their
laboratories before they are imported to Germany. Since 2010, the Hermes Hansecontrol Group has
local operations in Dongguan in China.
Among the websites of Hermes websites are:
www.hansecontrol.de
The Otto Freizeit und Touristik Group ("OFT") includes all Otto Group companies operating in tourism.
As of 1 January 2012 Otto Group sold 49 % of its stake in its Otto Freizeit und Touristik holding to VR
meine Raiffeisenbank Altötting-Mühldorf resulting in the deconsolidation of OFT. OFT's activities are not
among the Otto Group's core business activities. A 50 % stake in Otto Media, a joint venture with the
Bertelsmann Group, is not part of this deal.
Revenues (in € million) Employees (average)
2010/11 2009/10 2010/11 2009/10
Services 945 822 14,282 13,407
Thereof:
HLG Deutschland 402 351 3,576 3,163
PARCELNET GB 228 199 1,210 1,267
HERMES FULFILMENT 17 9 3,255 2,530
Financial Profile of the Otto Group
To finance its business Otto Group uses a variety of financial instruments: e.g. bilateral bank loans, asset
backed financings, bond financing and hybrid instruments. The financing portfolio encompasses a well
balanced maturity profile even beyond the maturity of the Notes.
55
Otto Group has access to a considerable amount of credit lines granted by several banks on a bilateral
basis. The use of these credit lines fluctuates within the year, but a significant amount is undrawn by the
Otto Group.
B. INVESTMENTS
In the year 2010/11 investments are focused on e-commerce activities, IT systems and the acquisition of
the Quelle brand. The latter comprises the country brands for Germany, Austria, Switzerland and Russia.
The acquisitions highlight in particular the expansion and the strengthening of the market position of the
EOS Group in the USA (Financial Services segment).
The Quelle brand was reintroduced on the Swiss market on 1 July 2010, and on the Austrian market on 1
January 2011. In addition, Unito has acquired the Ackermann brand in Switzerland.
In 2011, the Otto Group entered the Brasilian market. Moreover, it has continued to make various
venture capital investments in early stage e-commerce companies. These investments are conducted
through the eVenture Capital Funds. The Otto Group has asked the management of the fund to set up
additional funds with special focuses on regional markets. In addition, the Otto Group has started Project
A Ventures, a fund which invests in business models in an even earlier stage. The Otto Group intends to
fund this investments from its own cashflow.
In April 2011, the EOS group acquired a 100 % stake in Credirec Finance SAS, Paris, France. In June
2011, the EOS group acquired 60 per cent of the shares in Hoepers Recuperadora de Crédito S.A., one
of the top three debt collection companies in Brazil. From past acquisitions and disposals the Otto Group
is in some cases still entitled to receive and in other cases obliged to pay purchase prices due to put /
call options.
C. MATERIAL CONTRACTS
Otto Group did not enter into any contracts outside the ordinary course of business, which could result in
any obligation or entitlement that is material to the Issuer´s ability to meet its obligations to the Holders in
respect of the Notes.
However, Otto Group enters into agreements including put and call options which might lead to a sale or
purchase of shares regarding the respective entities. On 23 March 2009, an agreement was concluded
between the Otto Group and the French cooperative bank Banque Fédérative du Crédit Mutuel,
Strassbourg, France, (Crédit Mutuel) relating to the sale of shares in Cofidis Participations S.A., Croix,
France. As part of the agreement, 51.0 % of the shares in Cofidis Participations S.A. were transferred to
Carmen Holding Investissement S.A., Paris, France, in which Crédit Mutuel holds a 67.0 % stake. Due to
put and call options the Otto Group shares in Cofidis Participations might be further reduced in several
steps up to 2017.
Further, Otto Group concludes in the usual course of its business profit and loss agreements as well as
loss transfer declarations with its subsidiaries.
5. TREND INFORMATION
Save as disclosed in this Prospectus at the section "Recent Developments and Outlook" on page 75 of
this Prospectus, there has been no material adverse change in the ability of the Issuer to fulfill its
payment obligations since 28 February 2011.
6. CORPORATE BODIES
The relevant corporate bodies are
– the executive board (Management) of the General Partner ("Executive Board");
– the advisory board (Aufsichtsrat) of the General Partner ("Advisory Board");
56
– the general partners' meeting (Gesellschafterversammlung) ("General Partners' Meeting");
– the Partners' Committee (Gesellschafterrat) ("Partners' Committee").
Executive Board
The management is conducted exclusively by the General Partner. Pursuant to its articles of association,
the General Partner acts through its managing directors, who are appointed and dismissed by the
Supervisory Board. In connection with its management duties, the General Partner is bound by the
instructions of the General Partners' Meeting.
The current members of the Supervisory Board and Executive Board of the General Partner are:
Supervisory Board
Dr. Michael Otto, Hamburg
Chairman, Businessman
Uwe Rost, Seevetal*
Chairman of the Works' Council (Betriebsrat) of the Issuer, Deputy Chairman
Annette Adam, Kahl/Main*
Deputy Chairwoman of the Works' Council (Betriebsrat) of SCHWAB VERSAND GmbH
Thomas Armbrust, Reinbek
General Manager Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co.
Horst Bergmann, Michelau*
Chairman of the Works' Council Baur Versand (GmbH & Co KG)
Olaf Brendel, Hamburg*
Chairman of the General Works' Council Hermes Warehousing Solutions GmbH
Dr. Michael E. Crüsemann, Hamburg
General Manager (retired)
Dr. Thomas Finne, Hamburg
General Manager Kommanditgesellschaft CURA Vermögensverwaltung G.m.b.H. & Co.
Diethard Gagelmann, Hamburg
General Manager (retired)
Hans Jörg Hammer, Hamburg
General Manager (retired)
Herta Heuberger, Sauerlach/Arget*
Chairwoman of the General Works' Council SportScheck GmbH
Frank Leibig, Regensburg*
Secretary, Salaried Employees' Union ver.di
Dr. Michael Lichtenauer, Hamburg
Attorney
Dr. Wolfgang Linder, Hamburg
General Manager (retired)
Brigitte Nienhaus, Hamburg*
Head of retail and wholesale department, Union ver.di
57
Alexander Otto, Hamburg
Chairman of the Management ECE Projektmanagement G.m.b.H. & Co. KG
Lars-Uwe Rieck, Hamburg*
Secretary, Salaried Employees' Union ver.di
Dr. Winfried Steeger, Hamburg
Attorney
Monika Vietheer-Grupe, Barsbüttel*
Chairwoman of the Works' Council Bonprix Handelsgesellschaft mbH
Mechtild Wigger, Hamburg*
Division Manager Corporate Benefits & Policies Otto (GmbH & Co KG)
Prof. Dr. Peer Witten, Hamburg
Personally Liable Partner of Kommanditgesellschaft AURUM Beteiligungs- und Verwaltungs-G.m.b.H. &
Co.
* Employee representative
Executive Board
Hans-Otto Schrader, Hamburg
Chairman of the Executive Board and Chief Executive Officer Otto Group (CEO)
Dr. Rainer Hillebrand, Hamburg
Vice Chairman of the Executive Board Otto Group, Member of the Executive Board, Sales, Marketing
and E-Commerce Otto, Spokesman Otto
Alexander Birken, Hamburg
Member of the Executive Board, Human Resources and Controlling Otto, Chief Human Resources
Officer (Arbeitsdirektor)
Dr. Michael Heller, Hamburg
Member of the Executive Board, Merchandising Otto
Dr. Timm Homann, Bendestorf
Member of the Executive Board, Retail Otto Group
Hanjo Schneider, Hamburg
Member of the Executive Board, Services Otto Group
Jürgen Schulte-Laggenbeck, Hamburg
Member of the Executive Board, Finance and IT Otto Group, Chief Financial Officer (CFO)
Dr. Winfried Zimmermann, Reinbek
Member of the Executive Board, Human Resources and Controlling Otto Group
58
The following list sets forth the current principal activities of the members of the Executive Board
currently performed by them outside the Otto Group:
1. Hans-Otto Schrader no external mandates
2. Alexander Birken Chairman of the Executive Board (Vorstandsvorsitzender) "The
Young ClassX e. V."
Member of the Curatorship (Kuratorium) "HSBA Hamburg School
of Business Administration"
Member of the Curatorship (Kuratorium) "WERTE ERLEBEN
e. V."
Member of the Trading Committee "Handelskammer Hamburg"
Member of "Hochschulforum der Wirtschaft", Hamburg
Member of the Steering Committee (Präsidium) "Handelsverband
BAG"
3. Dr. Michael Heller no external mandates
4. Dr. Rainer Hillebrand Member of the Advisory Board (Beirat) "CBR Fashion Holding
GmbH"
Member of the Steering Committee (Präsidium) and the Executive
Board (Vorstand) "Bundesverband d. Deutschen Versandhandels
e.V."
5. Dr. Timm Homann Member of the Advisory Board (Beirat) "Dodenhof"
Member of the Board (Präsidium) "Institut für Handelsforschung",
University of Cologne, Cologne
Vice-President "HDE" (German Retail Federation), Berlin
Member of the Curatorship (Kuratorium) "Jahrbuch
Markentechnik", Genf
Member of the "Kellogg Alumni Council Europe"
6. Hanjo Schneider Deputy Chairman of the Supervisory Board (stv.
Beiratsvorsitzender) "TNT Post GmbH & CO KG"
Member of the Advisory Board (Beirat) "MADEC University", Wien
7. Jürgen Schulte-Laggenbeck Member of the Supervisory Board (Aufsichtsrat) "SCHUFA
Holding AG" Wiesbaden,
Member of the Advisory Board (Beirat) "HDI-Gerling Industrie
Versicherung AG", Hannover
Member of the Central Advisory Board (Zentralbeirat)
"Commerzbank AG", Frankfurt
Member of the Advisory Board (Beirat) "Eurohypo AG", Frankfurt.
8. Dr. Winfried Zimmermann no external mandates
There are no potential conflicting interests of the members of the Executive Board and the Supervisory
Board between any duties to the Issuer and their private interests and/or other duties.
The members of the Executive Board and the Supervisory Board can be contacted under the Issuer's
business address.
59
General Partners' Meeting
Resolutions of the General (Partners') Meetings of the Issuer are adopted by simple majority of the votes
attributable to the limited liability capital (Kommanditkapital), unless otherwise provided for in individual
provisions of the partnership agreement or other agreements of the partners. There are numerous
provisions in the partnership agreement requiring a majority other than the simple majority. Each
EUR 1.00 of the capital confers one vote.
The current partners are:
General Partner (Komplementärin)
Verwaltungsgesellschaft Otto mbH (the shares of which are owned by the limited partners
(Kommanditisten)).
Limited Partners (Kommanditisten)
OTTO Aktiengesellschaft für Beteiligungen, Hamburg
GS Gesellschaft für Versand-Beteiligungen m.b. H., Hamburg, and
Kommanditgesellschaft AURUM Beteiligungs- und Verwaltungs- G.m.b.H. & Co., Hamburg,
hold 100 % of the limited partnership interests.
Partners' Committee (Gesellschafterrat)
The Partners' Committee renders advice to the limited partners entitled to vote regarding their decisions
to be adopted at General Partners' Meetings or otherwise in connection with the responsibilities assigned
to them under applicable law and the articles of incorporation.
The Partners' Committee currently comprises the following members:
Thomas Armbrust
Hans Jörg Hammer
Alexander Otto
Dr. Michael Otto
Prof. Dr. Peer Witten
7. BOARD PRACTICES
The Issuer does not have to comply with the recommendations of the Government Commission of the
German Corporate Governance Code (Regierungskommission Deutscher Corporate Governance-Kodex
("DCGC")), as the DCGC is primarily focused on listed companies and does not reflect the concept of a
general partner being personally liable.
8. FINANCIAL INFORMATION CONCERNING THE ISSUER'S ASSETS AND LIABILITIES, FINANCIAL
POSITION AND PROFITS AND LOSSES
A. HISTORICAL FINANCIAL INFORMATION
The audited consolidated financial statements of the Issuer for the fiscal year ending 28 February 2011
prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU
and the additional requirements of German law pursuant to § 315a (1) HGB (Handelsgesetzbuch,
German Commercial Code) and the auditor's report (Bestätigungsvermerk) thereon, together contained
in Otto's Annual Report (Geschäftsbericht) 2010/11, are incorporated by reference into this Prospectus.
60
The audited consolidated financial statements of the Issuer for the fiscal year ending 28 February 2010
prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU
and the additional requirements of German law pursuant to § 315a (1) HGB (Handelsgesetzbuch,
German Commercial Code) and the auditor's report (Bestätigungsvermerk) thereon, together contained
in Otto's Annual Report (Geschäftsbericht) 2009/10, are incorporated by reference into this Prospectus.
A.1. FINANCIAL INFORMATION CONCERNING THE NINE MONTHS ENDED 30 NOVEMBER 2011
CONSOLIDATED INCOME STATEMENT (SUMMARY)
The increase in revenue (EUR +207.7 million), borne primarily by the positive performance in e-
commerce, and the increase in other operating income of EUR 83.1 million resulted overall in an
increase of revenue and other operating income to EUR 9,172 million (9M 2010/11: EUR 8,881 million).
Earnings before interest, tax, depreciation and amortisation (EBITDA) decreased to EUR 482.6 million
(9M 2010/11: EUR 574.6 million).
With depreciation and amortisation of EUR 174.2 million (9M 2010/11: EUR 173.7 million), EBIT
amounted to EUR 308.4 million (9M 2010/11: EUR 400.8 million).
Net financial result amounted to EUR -152.2 million, above that of the prior year (EUR -179.5 million
euros). Interest expenses amounted to -141.8 million euros (9M 2010/11: -145.8 million). Other net
financial result amounted to EUR -26.9 million following EUR -59.2 million for the nine-month period in
2010/11.
Earnings before tax (EBT) were EUR 156.2 million (9M 2010/11: EUR 221.3 million).
CONSOLIDATED CASH FLOW STATEMENT (SUMMARY)
Cash flow from operating activities increased to EUR 173.3 million (9M 2010/11: EUR 137.1 million).
Cash flow from investing activities was influenced by the cash inflow due to the sale of shares in Cofidis
companies.
Free cash flow has strongly increased to EUR 274.1 million (9M 2010/11: EUR -27.0 million).
EQUITY AND FINANCING
As per 30 November 2011, total assets are EUR 7,668.6 million. This represents a 0.6 % decrease in
comparison with 28 February 2011.
Developments on the financing side included a slight increase in current provisions and liabilities. The
increase amounted to EUR 16 million (+0.6 %).
The decrease in non-current provisions and liabilities of EUR -67.4 million is largely attributable to the
decrease of bank liabilities and other financial liabilities.
As per 30 November 2011, the equity ratio is 27.1 % compared to 27.0 % as per 28 February 2011.
NET FINANCIAL DEBT
The Otto Group increased its net financial debt by EUR 80.2 million to EUR 2,473.0 million, a slight
increase of 3.4 %.
61
A.2. SELECTED FINANCIAL INFORMATION
The following table sets out key consolidated financial information:
Period from 1
March until 30
November 2011
(unaudited)
Period from 1
March until 30
November 2010
(unaudited)
Financial Year
ended 28
February 2011
(audited)
Financial Year
ended 28
February 2010
(audited)
(in EUR thousand)
Revenue ................................................................ 8,554,004 8,346,271 11,403,913 10,132,044
EBITDA................................................................ 482,583 574,553 666,719 326,560
EBIT............................................................................. 308,401 400,839 377,521 46,216
EBT.............................................................................. 156,237 221,345 256,515 -133,096
Gross cash flow ........................................................... 456,871 576,323 693,180 414,759
30 November
2011
30 November
2010
28 February
2011
28 February
2010
Equity........................................................................... 2,074,588 2,083,524 2,080,514 2,036,207
Balance sheet total ...................................................... 7,668,602 7,691,616 7,717,543 7,498,282
Net financial debt (incl. pension provisions) ...................... 2,473,039 2,339,506 2,392,821 1,931,955
A.3 CONDENSED CONSOLIDATED FINANCIAL INFORMATION FOR THE NINE MONTHS ENDED
30 NOVEMBER 2011
The following tables set out interim consolidated financial information of the Issuer for the nine months
ended 30 November 2011. They include a condensed consolidated balance sheet, a condensed
consolidated income statement, a condensed consolidated cash flow statement and further explanatory
notes. The interim consolidated financial information has not been reviewed by auditors.
62
63
30/11/2011 28/02/2011
Equity and Liabilities
Equity
Equity attributable to Otto (GmbH & Co KG) 1,368,210 1,333,081
Capital provided by the limited partners of Otto (GmbH & Co KG) 770,000 770,000
Consolidated retained earnings 886,142 894,656
Net cost in excess of net assets acquired in step acquisitions -217,736 -210,260
Accumulated other comprehensive income -89,674 -134,158
Accumulated other equity 19,478 12,842
Non-controlling interests 499,375 538,042
Publicly listed equity and participation certificates 207,004 209,391
2,074,588 2,080,514
Non-current provisions and liabilities
Profit and loss participation rights 45,907 44,577
Pensions and similar obligations 671,031 660,303
Other provisions 90,675 99,133
Bonds payable 591,286 590,307
Bank liabilities 713,675 741,297
Other financial liabilities 235,407 267,090
Trade payables 38,482 35,618
Liabilities to related parties 1,737 2,903
Other liabilities 355,357 369,707
Other financial liabilities 204,355 221,610
Miscellaneous other liabilities 151,002 148,097
2,743,557 2,810,935
Deferred tax 82,697 74,337
Current provisions and liabilities
Profit and loss participation rights 2,738 2,738
Other provisions 208,548 221,676
Bonds and other notes payable 4,736 13,849
Bank liabilities 331,551 291,761
Other financial liabilities 212,884 242,353
Trade payables 965,177 995,763
Liabilities to related parties 58,799 31,153
Income tax liabilities 87,365 81,034
Other liabilities 895,960 871,431
Other financial liabilities 428,930 474,138
Miscellaneous other liabilities 467,030 397,293
2,767,759 2,751,757
Liabilities associated with assets held for sale
2,767,759 2,751,757
Total equity and liabilities 7,668,602 7,717,543
64
Condensed Consolidated Income Statement
1 March 2011 to 30 November 2011
9M 2011/12 9M 2010/11
EUR 000 EUR 000
REVENUE 8,554,004 8,346,271
Other operating income 617,609 534,490
REVENUE AND OTHER OPERATING INCOME 9,171,613 8,880,761
Change in inventories and other internal costs capitalised 15,194 24,190
Purchased goods and services -4,319,792 -4,105,178
Expenses relating to financial services -27,321 -25,035
Personnel expenses -1,485,916 -1,393,525
Other operating expenses -2,937,867 -2,890,796
Income (loss) from equity investments 66,671 84,136
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA) 482,583 574,553
Depreciation and amortisation -174,103 -171,476
Impairment losses -80 -2,238
EARNINGS BEFORE INTEREST AND TAX (EBIT) 308,401 400,839
Interest and similar income 16,574 25,475
Interest and similar expenses -141,800 -145,789
Other net financial income -26,938 -59,181
EARNINGS BEFORE TAX (EBT) 156,237 221,345
65
Consolidated Cash Flow Statement
1 March 2011 to 30 November 2011
9M 2011/12 9M 2010/11
EUR 000 EUR 000
Earnings before interest and tax (EBIT) 308,401 400,839
Depreciation, amortisation and impairment losses / revearsal of impairment losses
on intangible assets and property, plant and equipment174,180 173,308
Profits (-) / losses (+) from associates and joint ventures -65,252 -83,004
Dividends (+) received from associates and joint ventures 48,457 8,468
Increase (+) / decrease (-) in allowances on loans, receivables and inventories 85,053 95,006
Gains (-) / losses (+) on disposals of items in intangible assets and property, plant
and equipment-78,417 -108
Pension payments exceeding (-) / less than (+) pension expenses -17,370 -20,168
Other non-cash income (-) and expenses (+) 1,820 1,983
GROSS CASH FLOW FROM OPERATING ACTIVITIES 456,871 576,323
Increase (-) / decrease (+) in working capital -250,077 -390,272
NET CASH GENERATED FROM OPERATING ACTIVITIES 206,794 186,051
Income tax paid -45,555 -54,232
Interest received 4,416 10,030
Cash inflows / outflows from non-current financial assets and securities 7,597 -4,763
CASH FLOW FROM OPERATING ACTIVITIES 173,251 137,087
Capital expenditures on purchases of intangible assets and property, plant and equipment -232,285 -235,294
Payments for acquisition of subsidiaries -8,161 -29,208
Capital expenditures on purchases of other financial investments -43,248 -87,559
Proceeds from disposals 308,759 106,969
Proceeds from repayment of investments in other financial assets 75,750 81,004
CASH FLOW FROM INVESTING ACTIVITIES 100,815 -164,088
FREE CASH FLOW 274,067 -27,002
Dividends paid -152,888 -152,764
Interest paid -137,553 -91,121
Proceeds from additions to equity / payments for reductions in equity -232 209
Acquisition of subsidiaries -23,140 -27,502
Proceeds / payments (net) for issues and repurchases of profit and loss participation rights -490 -2,719
Payments of principal on finance leases -26,290 -24,932
Proceeds from assumption of other financial liabilities 153,386 313,211
Repayments of other financial liabilities -213,877 -397,625
CASH FLOW FROM FINANCING ACTIVITIES -401,083 -383,242
Cash and cash equivalents at beginning of period 402,427 811,946
Net increase in cash and cash equivalents -127,016 -410,244
Changes in cash and cash equivalents due to foreign exchange rates -2,268 5,627
CASH AND CASH EQUIVALENTS AT END OF PERIOD 273,143 407,329
66
A.4. FINANCIAL INFORMATION WITH THE FINANCIAL SERVICES SEGMENT ACCOUNTED FOR
AT-EQUITY FOR THE NINE MONTHS ENDED 30 NOVEMBER 2011
The business undertaken by Group companies in the Financial Services segment differs fundamentally
from the Otto Group's retail and service activities. To provide an even more differentiated insight into the
financial position, result of operations and cash flows in the Otto Group's trading and service activities by
eliminating the structures in the Financial Services segment, another view was prepared for the nine
months ended 30 November 2011.
It eliminates the assets, liabilities, expenses and income of Group companies in the Financial Services
segment from the consolidated financial statements, and instead reports the interests in Financial
Services companies using the equity method. This reporting of interests in Group companies in Financial
Services using the equity method is based on the overall percentage held at the level of the parent
companies concerned which are not allocated to the Financial Services segment. Hence, minority
interests in the share of results or share of net assets of Group companies in the Financial Services
segment are only reported if these interests are held by third-party shareholders of parent companies in
other segments.
The procedure described here deviates from IFRSs in that it forgoes the full consolidation of companies
in the Financial Services segment that would have to be consolidated pursuant to IAS 27 (and, that is,
reported in the IFRSs consolidated financial statements), based on the Otto Group's ability to exercise
control over such companies.
All other recognition and measurement methods are applied consistently with those used in the
consolidated interim financial information.
SELECTED FINANCIAL INFORMATION
The following table sets out key consolidated financial information:
Period from 1
March until
30 November
2011
(unaudited)
Period from 1
March until
30 November
2010
(unaudited)
Financial
Year ended
28 February
2011
(audited)
Financial
Year ended
28 February
2010
(audited)
(in EUR thousand)
Revenue ................................................................ 8,161,185 8,005,917 10,950,339 9,745,017
EBITDA................................................................ 434,257 528,035 696,733 304,345
EBIT............................................................................. 270,872 363,391 420,299 34,520
EBT.............................................................................. 136,706 198,117 228,286 216,951
Gross cash flow ........................................................... 531,562 501,991 583,079 1,011,079
30 November
2011
30 November
2010
28 February
2011
28 February
2010
Equity........................................................................... 2,010,314 2,018,808 2,014,846 1,970,785
Total assets ................................................................ 7,298,255 7,279,997 7,346,606 7,142,234
Net financial debt (incl. pension provisions) ...................... 2,019,842 1,891,492 1,930,790 1,454,132
67
68
30/11/2011 28/02/2011
Equity and Liabilities
Equity
Equity attributable to Otto (GmbH & Co KG) 1,368,210 1,333,081
Capital provided by the limited partners of Otto (GmbH & Co KG) 770,000 770,000
Consolidated retained earnings 886,142 894,656
Net cost in excess of net assets acquired in step acquisitions -217,736 -210,260
Accumulated other comprehensive income -89,674 -134,158
Accumulated other equity 19,478 12,842
Non-controlling interests 490,783 528,040
Publicly listed equity and participation certificates 151,322 153,726
2,010,314 2,014,846
Non-current provisions and liabilities
Profit and loss participation rights 45,907 44,577
Pensions and similar obligations 648,502 638,527
Other provisions 87,143 95,843
Bonds payable 591,286 590,307
Bank liabilities 580,784 611,297
Other financial liabilities 235,378 265,588
Trade payables 38,482 35,618
Liabilities to related parties 3,414 4,581
Other liabilities 351,919 359,633
Other financial liabilities 200,985 211,608
Miscellaneous other liabilities 150,934 148,026
2,582,814 2,645,971
Deferred tax 23,266 22,521
Current provisions and liabilities
Profit and loss participation rights 2,738 2,738
Other provisions 184,012 192,939
Bonds and other notes payable 4,736 13,849
Bank liabilities 289,277 259,962
Other financial liabilities 128,972 158,176
Trade payables 908,637 954,299
Liabilities to related parties 264,238 189,468
Income tax liabilities 81,430 73,340
Other liabilities 817,819 818,497
Other financial liabilities 371,141 434,344
Miscellaneous other liabilities 446,679 384,153
2,681,860 2,663,268
Total equity and liabilities 7,298,255 7,346,606
69
9M 2011/12 9M 2010/11
EUR 000 EUR 000
REVENUE 8,161,185 8,005,917
Other operating income 609,048 532,393
REVENUE AND OTHER OPERATING INCOME 8,770,233 8,538,310
Change in inventories and other internal costs capitalised 15,194 24,190
Purchased goods and services -4,319,978 -4,105,966
Personnel expenses -1,343,925 -1,270,957
Other operating expenses -2,815,497 -2,792,604
Income (loss) from equity investments 128,230 135,062
EARNINGS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (EBITDA) 434,257 528,035
Depreciation and amortisation -163,315 -162,406
Impairment losses -70 -2,238
EARNINGS BEFORE INTEREST AND TAX (EBIT) 270,872 363,391
Interest and similar income 24,541 30,875
Interest and similar expenses -133,729 -137,451
Other net financial income -24,979 -58,699
EARNINGS BEFORE TAX (EBT) 136,706 198,117
Financial Services at Equity
Condensed Consolidated Income Statement
1 March 2011 to 30 November 2011
70
9M 2011/12 9M 2010/11
EUR 000 EUR 000
Earnings before interest and tax (EBIT) 270,872 363,391
Depreciation, amortisation and impairment losses / reversal of impairment losses
on intangible assets and property, plant and equipment163,382 164,237
Profits (-) / losses (+) from associates and joint ventures -126,811 -133,930
Dividends (+) received from associates and joint ventures 240,133 39,950
Increase (+) / decrease (-) in allowances on loans, receivables and inventories 78,236 86,486
Gains (-) / losses (+) on disposals of items in intangible assets and property, plant
and equipment-78,637 -109
Pension payments exceeding (-) / less than (+) pension expense -17,184 -19,709
Other non-cash income (-) and expenses (+) 1,571 1,674
GROSS CASH FLOW FROM OPERATING ACTIVITIES 531,562 501,991
Increase (-) / decrease (+) in working capital -273,618 -375,476
NET CASH GENERATED FROM OPERATING ACTIVITIES 257,944 126,515
Income tax paid -28,331 -40,518
Interest received 11,626 15,229
Cash inflows / outflows from non-current financial assets and securities -4,425 -4,769
CASH FLOW FROM OPERATING ACTIVITIES 236,814 96,457
Capital expenditures on purchases of intangible assets and property, plant and equipment -219,871 -227,067
Payments for acquisition of subsidiaries 0 -19,404
Capital expenditures on purchases of other financial investments -248,426 -139,017
Proceeds from disposals 292,847 168,514
Proceeds from repayment of investments in other financial assets 75,750 81,004
CASH FLOW FROM INVESTING ACTIVITIES -99,700 -135,969
FREE CASH FLOW 137,114 -39,512
Dividends paid -145,239 -144,102
Interest paid -129,185 -83,489
Proceeds from additions to equity / payments for reductions in equity -244 208
Acquisition of subsidiaries -14,096 -27,369
Proceeds / payments (net) for issues and repurchases of profit and loss participation rights -211 -2,370
Payments of principal on finance leases -26,266 -24,820
Proceeds from assumption of other financial liabilities 193,977 261,510
Repayments of other financial liabilities -149,258 -356,437
CASH FLOW FROM FINANCING ACTIVITIES -270,522 -376,868
Cash and cash equivalents at beginning of period 362,370 772,640
Net increase in cash and cash equivalents -133,408 -416,380
Changes in cash and cash equivalents due to foreign exchange rates -2,499 4,677
CASH AND CASH EQUIVALENTS AT END OF PERIOD 226,463 360,938
Financial Services at Equity
Consolidated Cash Flow Statement
1 March 2011 to 30 November 2011
71
A.4. FURTHER EXPLANATORY NOTES TO THE INTERIM CONDENSED CONSOLIDATED
FINANCIAL INFORMATION OF OTTO (GMBH & CO KG) FOR THE NINE MONTHS ENDED
30 NOVEMBER 2011
Accounting principles and policies applied in the condensed interim consolidated financial
information
The Issuer, Wandsbeker Str. 3-7, 22172 Hamburg, Germany (Hamburg District Court (Amtsgericht),
Commercial Register No. HRA 62024) and its subsidiaries (the Otto Group) are a retailing and services
group mainly operating in three economic regions: Europe, North America and Asia.
The Group's operations comprise multichannel retail, financial services and other activities in the fields of
travel, logistics and service. The Financial Services segment includes banking activities and other
consumer loan and collection services.
In the preparation of the interim consolidated financial information the Otto Group has applied the same
consolidation, recognition and measurement principles as used in the audited annual consolidated
financial statements as per 28 February 2011 which have been prepared in accordance with the IFRS as
adopted by the European Union.
However, the interim consolidated financial information for the nine-month period ended November 30,
2011 do not constitute interim financial statements in accordance with IAS 34 as they do not include all
components of such interim financial statements and derivate in certain presentations and disclosures
from the requirements of IAS 34. In addition, the Otto Group did not apply the provisions relating to IAS
36 (Impairment of assets) for the nine-month period ended November 30, 2011. For the impairment
losses recognised in the financial year 2010/11 please refer to page 73.
The interim consolidated financial information was prepared in Euros. Unless otherwise specified, all
amounts are shown in thousands of Euros (EUR 000).
The following standards were first applied in the interim consolidated financial information of the Otto
Group as at and for the nine months ended 30 November 2011:
Date published by
IASB
IAS 24 Related Party Disclosures November 2009
Omnibus "Annual Improvements Project" May 2010
IFRIC 14Prepayments of a Minimum Funding Requirement:
Amendments to IFRIC 14November 2009
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments November 2009
The amendments above did not have any significant effect on the presentation of the Group's IFRS
interim consolidated financial information.
72
CHANGES IN THE SCOPE OF CONSOLIDATION
Acquisitions
In April 2011, the EOS Group acquired a 100 % stake in Credirec Finance SAS, Paris, France. In
addition, in June 2011 the EOS Group acquired 60 % of the shares in Hoepers Recuperadora de Crédito
S.A., Porto Alegre, Brasil. The purchase price allocation for the acquisitions is preliminary only.
Since the companies mentioned above have been integrated in the group, these companies contributed
EUR 865 thousand to Otto Group's EBT.
In addition, other companies were first consolidated in the first nine months of FY 2011/12, which in
total are only of minor interest for the financial position, financial performance and cash flows of the
Otto Group.
Deconsolidations
In 2011, the Otto Group sold all the shares in Senior & Cie SAS, Croix, France. In the past financial
year up to the time of their deconsolidation, the above-mentioned company generated revenue of
EUR 26,225 thousand, and a loss before tax of EUR -2,142 thousand. The deconsolidation of
Senior & Cie SAS, Croix, France, resulted in a loss of EUR -8,226 thousand, which was recognised
in other net financial income.
In addition, other companies were deconsolidated in the first nine months of FY 2011/12, which in
total are only of minor interest for the financial position, financial performance and cash flows of the
Otto Group.
NOTES TO THE CONSOLIDATED INCOME STATEMENT
Other operating expenses
Other operating expenses consist of the following:
EUR 000 9M 2011/12 9M 2010/11
Catalogue and advertising costs1,378,872 1,389,488
Shipping costs268,874 254,942
Leasing expenses 237,476 228,340
Commissions and fees108,541 114,337
Legal, audit and professional fees157,799 114,853
Derecognitions and changes in allowances on receivables97,428 115,393
Maintenance and repairs103,416 101,591
Office and communication costs97,614 99,490
Costs of contract staff83,458 76,552
Ancillary building costs 73,589 70,202
Other taxes24,177 25,874
Other 306,623 299,734
Other operating expenses 2,937,867 2,890,796
73
NOTES TO SEGMENT REPORTING
Accounting Principles
Pursuant to IFRS 8, segment reporting is based on the 'management approach'. This harmonises
segment reporting with internal reporting to respective primary decision makers, which contains
information presented to these decision makers in the course of regular reporting that is then used to
allocate resources for the divisions within the Group. In accordance with the Group's internal
management structure, segment reporting is based on the Group's business segments.
To supplement the business segments, additional information is provided on the geographical regions.
Business segments
The Otto Group conducts business in the following segments:
Multichannel Retail
The Multichannel Retail segment includes all of the Group's operations that involve selling consumer
goods to retail customers. Business is conducted by means of a multichannel strategy that covers
distance selling and over-the-counter retail. However, it is distance selling, with its catalogue and e-
commerce sales channels, that forms the main focus of this segment.
Financial Services
The Financial Services segment includes the Group's debt collection, information management and
liquidity management services.
Services
The Otto Group's services segment comprises logistics and travel services. Logistics services include a
wide range of activities, from procurement and haulage through to home deliveries to end customers and
services related to delivered merchandise. The Otto Group's travel services operations also take a
multichannel approach.
Geographical reasons
In addition to Germany and France, the Otto Group is especially active in other European countries and
North America as well as in Asia. 'Other regions' covers operations in all remaining regions.
74
Segment information
RELATED PARTY TRANSACTIONS WITH PARTNERS
By 30 November 2011, loans were extended to partners of the Issuer. The loans bear variable rates of
interest (EONIA + 0.65 %) and are not subject to a contractual term. Dividends paid out by the Issuer
were in part used in partial repayment of the loans. Including accrued interest, as per 30 November 2011
the loans had a carrying amount of EUR 324,652 thousand (28 February 2011: EUR 396,085 thousand).
9M 2011/12 9M 2010/11 9M 2011/12 9M 2010/11 9M 2011/12 9M 2010/11 9M 2011/12 9M 2010/11 9M 2011/12 9M 2010/11
EUR 000 EUR 000 EUR 000 EUR 000 EUR 000 EUR 000 EUR 000 EUR 000 EUR 000 EUR 000
External revenue 7,413,849 7,313,331 393,718 341,377 746,436 691,563 0 0 8,554,004 8,346,271
Internal revenue (inter-segment) 1,775 2,324 26,906 26,389 784,588 779,993 -813,270 -808,707 0 0
Purchased goods and services -3,628,293 -3,445,256 0 0 -799,230 -770,349 107,732 110,427 -4,319,792 -4,105,178
Expenses relating to financial services 0 0 -27,321 -25,035 0 0 0 0 -27,321 -25,035
Gross profit 3,787,331 3,870,399 393,304 342,731 731,794 701,208 -705,538 -698,280 4,206,891 4,216,058
Operating income and expenses -2,588,123 -2,655,936 -141,428 -122,720 -271,014 -245,845 680,308 668,194 -2,320,258 -2,356,306
Personnel expenses -932,708 -896,056 -141,990 -122,568 -377,078 -348,766 -34,139 -26,135 -1,485,916 -1,393,525
Income (loss) from equity investments -325 4,274 66,403 77,833 593 2,029 0 0 66,671 84,136
Depreciation and amortisation -129,514 -129,311 -10,788 -9,070 -33,801 -33,094 0 0 -174,103 -171,476
Impairment losses 0 -916 -10 0 -70 -1,322 0 0 -80 -2,238
Earnings before interest and tax (EBIT) 151,578 216,036 165,490 166,207 50,702 74,817 -59,370 -56,221 308,401 400,839
Segment assets 4,656,076 4,624,582 2,018,470 1,916,229 656,940 675,596 -528,817 -526,777 6,802,669 6,689,630
Capex 220,493 175,378 47,395 22,971 64,650 54,284 0 0 332,537 252,633
Gross cash flow from operating activities 264,914 410,363 164,177 113,014 87,102 109,126 -59,321 -56,180 456,871 576,323
Employees (number) 30,818 29,832 8,612 5,293 15,036 14,121 239 284 54,706 49,530
Segment Report
1 March 2011 to 30 November 2011
HOLDING /
CONSOLIDATIONGROUP
MULTICHANNEL
RETAIL
FINANCIAL
SERVICESSERVICES
Geographic information
EUR 000 9M 2011/12 9M 2010/11 9M 2011/12 9M 2010/11
Germany 4,952,584 4,840,987 939,765 859,564
France1,075,443 1,091,627 322,973 300,950
Rest of Europe
1,537,845 1,405,160 284,792 293,038
North America797,504 810,287 448,517 481,992
Asia176,443 197,063 57,545 59,018
Other regions 14,185 1,148 18,170 0,842
Group8,554,004 8,346,271 2,071,761 1,995,403
Revenue with third parties Non-current assets
75
A.3. EXCERPT FROM THE NOTES TO THE FINANCIAL STATEMENTS 2010/11
The Otto Group's financial performance in the fiscal years 2009/10 and 2010/11 was affected by one-off
items which are explained in the following selected notes taken from the annual report for the fiscal year
2010/11 (the "Annual Report"). In addition, investors should analyse the whole Annual Report for a
comprehensive understanding of the financial information.
Restructuring expenses (Annual Report, page 17):
"In 2010/11, the profit includes restructuring expenses totalling EUR 85.1 million (2009/10: EUR 115.8
million). This item includes expenses from the 'New Market-oriented Warehousing Logistics' project of
EUR 31.9 million in Germany and restructuring expenses largely attributable to French operations
amounting to EUR 53.2 million."
Depreciation and amortisation (Annual Report, page 17 and 94):
"Impairment losses of EUR 53.8 million were recognised in 2010/11 (2009/10: EUR 60.8 million)."
"Impairment carried out on intangible assets and property, plant and equipment in 2010/11 relates mainly
to acquired customer bases, acquired software, real estate and technical plant and machines."
Personnel expenses (Annual Report, page 92):
"Wages and salaries include restructuring expenses of EUR 39,861 thousand (2009/10: EUR 84,954
thousand) resulting from reorganisation-related severance and termination agreements."
Net financial result (Annual Report, page 95 and 100):
"Income from financial investments and securities, and from the sale of shares in consolidated
companies, associates and joint ventures comprise income from the sale of 16.5 % of the shares in
Carmen Holding Investissement S.A., Paris, France, by exercising a put option for these shares in
January 2011. "
"Based on the purchase price, a gain of EUR 89,864 thousand was recognised. "
The Consolidated Cash Flow Statement was also influenced by one-off items (Annual Report, page
56/57):
The cash flow from operating activities was affected primarily by the increase in inventories totaling
EUR 303.0 million due to the expansion of business activities and in anticipation of the resources crisis.
In 2009/10, operating cash flow contained cash flow from discontinued operations (Cofidis, Monabanq) of
EUR 113.0 million.
Cash flow from investing activities in 2009/10 was largely influenced by the cash flows from the disposal
of shares in the Cofidis and Monabanq Group (EUR 548.5 million).
In 2009/10, cash flow from financing activities was largely influenced by issuance of bonds. The
repayment of loans had the reverse effect.
Related party transactions with partners (Annual Report, page 151):
"In the year under review, loans were extended to partners of the Issuer. The loans bear variable rates of
interest and are not subject to a contractual term. Dividends paid out by the Issuer were in part used in
partial repayment of the loans. Including accrued interest, as per 28 February 2011 the loans have a
carrying amount of EUR 396,085 thousand (28 February 2010: EUR 481,995 thousand)."
B. RECENT DEVELOPMENTS AND OUTLOOK
The year-end results of Otto Group for the fiscal year 2011/12 will be available to the public by 20 June
2012. The Group expects that revenues for the fiscal year 2011/12 will be above the fiscal year 2010/11,
76
but for the reasons outlined below the year-end results will be significantly lower than the 9-months
results as per 30 November 2011, but cannot be quantified yet.
During the fiscal year 2011/12, the Group has suffered from higher purchase prices for the goods sold
due to higher cotton prices and rising labour cost in Asian markets. In addition, the Group will be subject
to one-off items. Amongst these items, the developments at Arianta S.A.S., a French subsidiary of
"3 Suisses International", have the most significant effect. A decision to close the business of Arianta
S.A.S. was made in early 2012 resulting in a negative impact on profits of approximately EUR 55 - 65
million including restructuring and closure provisions.
C. FUTURE DEVELOPMENT OF THE OTTO GROUP
Over the coming two years, the Group is planning to continue its organic growth and explore additional
opportunities for acquisitions and for tapping new markets. Besides the intensified development of e-
commerce activities, the focus will also be on developing the Group's planned commitment in Brazil and
China.
The Otto Group strives to maintain further growth in existing activities of all segments in the years ahead
and sufficient internal financing capabilities will help create latitude for further expansion.
The focus for expansion for the next two years will be on the Group's strong position in Russia and on
market share in other non-European economic areas. Investment options in core European markets are
continually being reviewed to strengthen the multichannel strategy.
The Otto Group is very well positioned in the Financial Services segment thanks to the EOS Group, and
is planning further expansion of its portfolio. Besides targeting regional growth, especially in Europe, the
Group is looking to expand its product range.
In the Services segment, the Otto Group is aiming to enhance its growth-oriented positioning.
Retailrelated services providers will continue to use a wide range of growth initiatives and a systematic
expansion of their service range to strengthen the future viability of the Otto Group.
Despite overall economic developments that are fraught with imponderables, the Otto Group will have
sufficient opportunity to increase its revenue and profits in the next two years.
D. SIGNIFICANT CHANGE IN THE FINANCIAL OR TRADING POSITIONS OF OTTO (GMBH & CO
KG)
Save as disclosed in this prospectus at the section "Financial Information concerning the Issuer's Assets
and Liabilities, Financial Position and Profits and Losses" on page 59 of this Prospectus, there has been
no significant change in the financial or trading position of the Issuer or the Otto Group since
30 November 2011.
9. LEGAL AND ARBITRATION PROCEEDINGS
The Issuer currently is not aware of any governmental, legal, arbitration proceedings or proceedings
before administrative authorities to which either the Issuer or any of its subsidiaries is a party that could
have a material impact on the financial condition of the Issuer or the Otto Group or did have such impact
within the last 12 months. The Issuer is also not aware of any threat of any such proceedings.
77
USE OF PROCEEDS
In connection with the offering of the Notes, the Issuer will receive net proceeds of approximately
EUR [●], after deducting aggregate costs and the underwriting commission aggregating approximately
EUR [●]. The Issuer intends to use the net proceeds for general corporate purposes, which may include
the financing of its merger & acquisition activities.
78
TAXATION
The following is a general description of certain tax considerations relating to the Notes in Austria,
Germany and Luxembourg. It does not purport to be a complete analysis of all tax considerations relating
to the Notes. Prospective purchasers of Notes should consult their tax advisers as to the consequences,
under the tax laws of the country in which they are resident for tax purposes and under the tax laws of
Austria, Germany and Luxembourg of acquiring, holding and disposing of Notes and receiving payments
of principal, interest and other amounts under the Notes. This summary is based upon the laws in force
and their interpretation on the date of this Prospectus and is subject to any change in law or
interpretation that may take effect after such date.
Republic of Austria
General Information
The following is a brief summary of certain Austrian tax aspects in connection with the acquisition,
ownership and disposition of the Notes. It does not claim to fully describe all Austrian tax
consequences nor does it take into account the Noteholders' individual circumstances or any
special tax treatment that may be applicable to the Noteholder. Prospective investors should consult
their own professional advisors as to the particular tax consequences of the acquisition, ownership
and disposition of the Notes.
This summary is based on Austrian law as in force when drawing up this prospectus. The laws and
their interpretation by the tax authorities may change and such changes may also have retroactive
effect. The investor bears the tax risk related to the Notes, if any.
Individuals having a domicile or their habitual abode in Austria are subject to income tax in Austria
on their worldwide income (unlimited income tax liability). Individuals who neither have a domicile
nor their habitual abode in Austria are only subject to Austrian income tax with certain income
derived from Austria (limited income tax liability).
Corporations having their place of management or seat in Austria are subject to corporation income
tax in Austria on their worldwide income (unlimited corporate tax liability). Corporations having their
place of management and seat outside of Austria are subject to corporation income tax in Austria
only with certain income derived from Austria (limited corporate tax liability).
In case of unlimited income tax or corporate tax liability as well as in case of limited income tax or
corporate tax liability, the taxation right of Austria may be restricted by applicable double taxation
treaties.
As of 1 January 2011, a new law entered into force which leads to a significant change in the
taxation of financial instruments (Budgetbegleitgesetz 2011, "BBG 2011"). The new regime will be
applicable as of 1 April 2012.
Income Taxation of Notes which are acquired before 1 April 2012
Individuals – Private Assets
Individuals which are subject to unlimited income tax liability in Austria and hold the Notes as
private assets, are subject to income taxation with the interest derived from the Notes (including the
difference amount between the issuance price and redemption price).
If the interest is paid out by a domestic paying agent (inländische kuponauszahlende Stelle), 25 %
79
withholding tax (Kapitalertragsteuer, "KESt") is deducted. Besides this withholding tax, no income
tax is levied (final taxation, Endbesteuerung). In case the interest is not paid out by a domestic
paying agent, it is subject to income taxation at a special rate of 25 %. In such case, the withholding
mechanism does not apply and the investor must disclose the interest in his income tax return. In
both cases, the investor may apply for taxation of all income which is subject to the special tax rate
of 25 % to be taxed at the lower progressive tax rate.
Income derived from the disposal of the Notes before 1 April 2012 is only subject to income tax
provided that the purchase and sale of the Notes occurred within one year. In such case, the capital
gains are taxed as income from speculative transactions (Einkünfte aus Spekulationsgeschäft) at
the progressive tax rate up to 50 %. Losses from speculative transactions may generally only be set
off with profits from other speculative transactions; a loss compensation with other kind of income is
not allowed. The income from speculative transactions is tax exempt in case it is less than EUR 440
in a calendar year.
Capital gains derived from the disposal of the Notes before 1 April 2012 which are achieved after
the one-year speculative period are tax exempt.
Individuals – Business Assets
Individuals which are subject to unlimited income tax liability in Austria and hold the Notes as
business assets, are subject to income taxation with the interest derived from the Notes (including
the difference amount between the issuance price and redemption price). If the interest is paid out
by a domestic paying agent (inländische kuponauszahlende Stelle), 25 % withholding tax
(Kapitalertragsteuer, "KESt") is deducted. Besides this withholding tax, no income tax is levied
(final taxation, Endbesteuerung). In case the interest is not paid out by a domestic paying agent, it
is subject to income taxation at a special rate of 25 %. In such case, the withholding mechanism
does not apply and the investor must disclose the interest in his income tax return. In both cases,
the investor may apply for taxation of all income which is subject to the special tax rate of 25 % to
be taxed at the lower progressive tax rate.
Income derived from the disposal of the Notes before 1 April 2012 are subject to income tax at the
progressive tax rate up to 50 %. Losses suffered from the disposal of the Notes before 1 April 2012
may be set off with other income.
Corporations
The interest (including the difference amount between the issue price and the redemption price)
achieved from the Notes by corporations subject to unlimited tax liability in Austria are subject to
25 % corporate income tax. In case of filing of a declaration pursuant to sec. 94 para 5 of the
Austrian Income Tax Act (Einkommensteuergesetz, "EStG") no withholding tax is deducted. Capital
gains derived from the disposal of the Notes are subject to 25 % corporate income tax. Losses
suffered from the disposal of the Notes may be set off with other income.
Private Foundations
The interest (including the difference amount between the issue price and the redemption price)
achieved from the Notes by private foundations are subject to interim taxation
(Zwischenbesteuerung) of 25 %. If certain conditions are fulfilled, no withholding tax is deducted.
Capital gains derived from the disposal of the Notes before 1 April 2012 are subject to 25 %
corporate income tax if they are achieved within the speculative period of one year. Losses suffered
80
from speculative transactions may only be set off with capital gains derived from other speculative
transactions; a loss compensation between losses from speculative transactions with other income
is not allowed. In case the income from speculative transactions does not exceed an amount of
EUR 440 in a calendar year, the income from speculative transactions is tax exempt.
Income Taxation of Notes which are acquired after 31 March 2012
Upon introduction of the BBG 2011, the Austrian legislator intended a comprehensive reform of the
taxation of financial instruments, in particular capital gains. Pursuant to the sec 27 para 1 EStG in
its amended version, capital income comprises:
• income from allocation of capital pursuant to sec. 27 para 2 EStG, comprising dividends and
interest;
• capital gains pursuant to sec. 27 para 3 EStG, comprising capital gains derived from the
disposal, redemption or any other kind of disposal of capital assets, the income of which
classifies as income from allocation of capital, including income from zero bonds and accrued
interest; and
• income from derivative instruments pursuant to sec. 27 para 4 EStG, comprising settlement
payments, option writer premiums and income from the disposal or any other kind of
settlement of forward transactions like options, futures and swaps and other derivate financial
instruments like investment certificates.
The withdrawal or any other kind of removal of the Notes from the deposit is deemed as taxable
(except in cases of transfer to another deposit which does not lead to a loss of the taxation right of
the Republic of Austria in relation to other states and specific notification obligations pursuant to sec
27 para 6 subpara 1 lit a EStG are fulfilled).
As of 1 January 2013, the Austrian custodian bank is obliged pursuant to sec 93 para 6 EStG to
implement a set off of all negative capital income and positive negative capital income achieved on
all deposits held with such custodian bank (loss compensation). The custodian bank is obliged to
issue a confirmation regarding the loss compensation for each deposit.
Individuals – Private Assets
Individuals which are subject to unlimited taxation in Austria who hold the Notes as private assets,
are subject to income tax with all income derived thereof pursuant to sec. 27 para 1 EStG.
Domestic capital income – which is in general all capital income paid out by a domestic paying
agent or domestic custodian bank – is subject to withholding tax (Kapitalertragsteuer,"KESt") of
25 %. Besides this withholding tax, no income tax is levied (final taxation, Endbesteuerung).
Foreign capital income must be disclosed by the investor in its income tax return and is subject to
income tax at a special rate of 25 %. In both cases there is the option to apply for a taxation of the
total capital income generally subject to the tax rate of 25 % at the lower progressive tax rate
(option for taxation at the progressive tax rate pursuant to sec 27a para 5 EStG). Pursuant to sec
27 para 8 EStG, a compensation of losses suffered from capital investments with other income is
not allowed. Negative income subject to the special tax rate of 25 % may not be set off with other
income which is subject to the progressive tax rate (this rule also applies in case the option for
taxation at the progressive tax rate is filed). Further, a loss compensation between losses suffered
from the disposal or derivate instruments and interest income from deposits or other receivables
81
vis-a-vis credit institutions and distributions from private foundations of foreign funds or any other
kind of estates comparable with a private foundation, is not allowed.
Individuals – Business Assets
Individuals which are subject to unlimited taxation in Austria who hold the Notes as business assets,
are subject to income tax with all income derived thereof pursuant to sec. 27 para 1 EStG.
Domestic capital income (as described above) is subject to 25 % withholding tax
(Kapitalertragsteuer, "KESt"). In case of income derived from the allocations of capital, the
withholding tax constitutes a final taxation, whereas capital gains and income from derivate
instruments must be disclosed in the income tax return (nevertheless special tax rate of 25 %
applicable). Foreign capital income must in any case be disclosed in the income tax return (special
tax rate of 25 %). In both cases there is the option to apply for a taxation of the total capital income
generally subject to the tax rate of 25 % at the lower progressive tax rate (option for taxation at the
progressive tax rate pursuant to sec 27a para 5 EStG).
Corporations
Interest derived by the Notes achieved by corporations which are subject to unlimited taxation in
Austria is subject to 25 % corporate income tax. No withholding tax is deducted if the requirements
of sec 94 para 5 EStG are fulfilled. Capital gains derived from the disposal of the Notes are subject
to 25 % corporate income tax. Losses suffered from the disposal of the Notes may generally be set
off with other income.
Private Foundations
Interest, capital gains and income from derivative instruments achieved by private foundations is
subject to interim taxation (Zwischenbesteuerung) of 25 %. No withholding tax is deducted provided
that the requirements of sec 94 para 12 EStG are fulfilled.
EU-Withholding Tax
Interest paid to an economic owner who is an individual with its domicile in another EU member
state, is subject to 35 % EU-withholding tax. The EU-withholding tax is not deducted if the economic
owner provides evidence that the interest is properly disclosed with the competent tax office in the
resident state and for this purpose provides a confirmation issued by the tax office in the resident
state with specific information. Such a confirmation is valid for a period of three years.
Inheritance and Gift Tax
Austria does not levy any inheritance and gift tax since 1 August 2008.
Contributions to (domestic or foreign) private foundations and comparable estates are subject to
contribution tax (Stiftungseingangssteuer). A tax liability is triggered if the contributor and/or the
recipient have a domicile, habitual abode, seat or place of management in Austria. Tax exemptions
apply in case of inheritance, in particular for bank deposits and notes (public placements) as well as
portfolio participations (is less than 1 % in the shares). The contribution tax is 2.5 %, in specific
cases 25 %, of the market value of the contributed assets.
Further, there is a notification obligation in case of donation of cash, securities, participations in
corporations and partnerships, businesses, movable assets and intangibles. The notification
obligation applies in case the donor and/or the donee have a domicile, their habitual abode, seat or
82
place of management in Austria. There are exemptions from the notification obligation: donations
between family members in the amount of EUR 50,000 per year and donations to third persons in
the amount of EUR 15,000 within five years. In case of an intentional violation of the notification
obligation, a penalty up to 10 % of the market value of the donated assets may be imposed.
Federal Republic of Germany
Income tax
Notes held by German tax residents as private assets
- Taxation of interest
Payments of interest on the Notes to Holders who are tax residents of Germany (i.e., persons whose
residence or habitual abode is located in Germany) are subject to German income tax, and, if applicable,
church tax. In each case where German income tax arises, a solidarity surcharge (Solidaritätszuschlag)
is levied in addition.
Payments of interest on the Notes to individual tax residents of Germany will generally be subject to a flat
income tax at a rate of 25 % (plus solidarity surcharge in an amount of 5.5 % of such tax, resulting in a
total tax charge of 26.375 %). The total investment income of an individual will only be decreased by a
lump sum deduction (Sparer-Pauschbetrag) of EUR 801 (EUR 1,602 for married couples filing jointly),
not by a deduction of expenses actually incurred.
If the Notes are held in a custodial account which the Holder maintains with a German branch of a
German or non-German bank or financial services institution or with a securities trading business or bank
in Germany (the "Disbursing Agent"), the flat income tax will be levied by way of withholding from the
gross interest payment to be made by the Disbursing Agent.
In general, no withholding tax will be levied if the Holder is an individual (i) whose Note do not form part
of the assets of a German trade or business and (ii) who filed a withholding exemption certificate
(Freistellungsauftrag) with the Disbursing Agent but only to the extent the interest income derived from
the Note together with other investment income does not exceed the maximum exemption amount
shown on the withholding exemption certificate. Similarly, no withholding tax will be deducted if the
Holder has submitted to the Disbursing Agent a certificate of non-assessment (Nichtveranlagungs-
bescheinigung) issued by the relevant local tax office.
If no Disbursing Agent (as defined above) is involved in the payment process, the Holder will have to
include its income on the Notes in its tax return and the flat income tax of 25 % plus solidarity surcharge
plus church tax, if any, will be collected by way of assessment.
Payment of the flat income tax by way of withholding will generally satisfy any income tax liability of the
Holder in respect of such investment income. Holders may apply for a tax assessment on the basis of
general rules applicable to them if the resulting income tax burden is lower than 25 %.
- Taxation of capital gains
Capital gains from the disposition or redemption of the Notes acquired after 31 December 2008 are
subject to the flat income tax on investment income as described above.
Losses from the disposal or redemption of the Notes can only be offset against other investment income.
In the event that an off-set is not possible in the assessment period in which the losses have been
realised, such losses will be carried forward into future assessment periods and can be off-set against
investment income generated in future assessment periods subject to minimum taxation rule.
If the Notes are held in a custodial account which the Holder maintains with a Disbursing Agent (as
defined above), the flat income tax will be levied by way of withholding from the difference between the
83
redemption amount (or the proceeds from the disposition) and the issue price (or the purchase price) of
the Notes after deduction of the directly related disposition expenses. If the Notes have been transferred
into the custodial account of the Disbursing Agent only after their acquisition, and no evidence on the
acquisition data has been provided to the Disbursing Agent by the bank, financial services institution or
domestic securities trading business or bank with which the Holder previously maintained its custodial
account, withholding tax will be levied on 30 % of the proceeds from the disposition, assignment or
redemption of the Notes.
If no Disbursing Agent is involved in the payment process, the Holder will have to include capital gains
from the disposition or redemption of the Notes in its tax return and the flat income tax of 25 % plus
solidarity surcharge plus church tax, if any, will be collected by way of assessment.
Payment of the flat income tax by way of withholding will generally satisfy any income tax liability of the
Holder in respect of such investment income. Holders may apply for a tax assessment on the basis of
general rules applicable to them if the resulting income tax burden is lower than 25 %.
The rules set out above with respect to the taxation of capital gains apply accordingly to (i) the proceeds
from the disposition of coupons or interest claims (minus sales costs, if any) in case that such coupons or
interest claims are disposed of separately (i.e., without the Notes) and (ii) the proceeds from the
redemption of coupons or interest claims if the Note is disposed of separately.
Notes held by German tax residents as business assets
Payments of interest on Notes, capital gains from the disposition or redemption of Notes, or proceeds
from the disposition or redemption of coupons or interest claims held as business assets by German tax
resident individuals or corporations (including via a partnership, as the case may be), are generally
subject to German income tax at the respective individual income tax rate or corporate income tax at a
tax rate of 15 % (in each case plus solidarity surcharge). The interest and capital gain will also be subject
to trade tax if the Notes form part of the assets of a German trade or business for which a German
permanent establishment is maintained.
If the Notes are held in a custodial account which the Holder maintains with a Disbursing Agent (as
defined above), tax at a rate of 25 % (plus a solidarity surcharge of 5.5 % of such tax) will also be
withheld from interest payments on Notes and generally also from capital gains from the disposition of
Notes and from proceeds from the disposition or redemption of coupons or interest claims held as
business assets. In these cases the withholding tax does not satisfy the income tax liability of the Holder,
as in the case of the flat income tax, but will be credited or refunded, as the case may be, as advance
payment against the personal income or corporate income tax liability and the solidarity surcharge of the
Holder. With regard to capital gains no withholding will generally be required under certain circumstances
in the case of Notes held by corporations resident in Germany and upon application using the official
template in the case of Notes held by individuals or partnerships as business assets in a business
situated in Germany.
Notes held by German non-tax residents
Interest and capital gains are not subject to German taxation in the case of non-residents, i.e., persons
having neither their residence nor their habitual abode nor legal domicile nor place of effective
management in Germany, unless (i) the Notes form part of the business assets of a permanent
establishment maintained in Germany or of a business in Germany for which a permanent representative
has been appointed or (ii) the Notes are presented for payment or credit at the offices of a German credit
or financial services institution including a German branch of a foreign credit or financial services
institution (over-the-counter transaction).
Non-residents of Germany are in general not subject to German withholding tax deduction in relation to
interest and capital gains and from solidarity surcharge thereon. However, if the interest or capital gain is
84
subject to German taxation as set forth in the preceding paragraph under (i) and the Notes are held in a
custodial account with a Disbursing Agent (as defined above), withholding tax will be levied as explained
above at "Notes held by German tax residents as business assets". No withholding tax should be levied
on the capital gains from the disposition of the Notes or the proceeds from the disposition of the coupons
or interest claims if (i) the Notes or the coupons or interest claims were held as business assets in a
permanent establishment situated in Germany or as business assets in Germany for which a permanent
representative was appointed and (ii) the Holder notifies the Disbursing Agent by using the official
template accordingly. If the interest or capital gain is subject to German taxation as set forth in the
preceding paragraph under (ii) withholding tax will be levied by the German credit or financial services
institution or the German branch of a foreign credit or financial services institution as explained above at
"Notes held by German tax residents as private assets".
Inheritance and Gift Tax
No inheritance or gift taxes with respect to any Note will arise under German law, if, in the case of
inheritance tax, neither the decedent nor the beneficiary, or, in the case of gift tax, neither the donor nor
the donee, is a resident of Germany and such Note is not attributable to a German trade or business for
which a permanent establishment is maintained, or a permanent representative has been appointed, in
Germany. Exceptions from this rule apply to certain German citizens who previously maintained a
residence in Germany.
Other Taxes
No stamp, issue, registration or similar taxes or duties will be payable in the Germany in connection with
the issuance, delivery or execution of the Notes. Currently, net assets tax (Vermögensteuer) is not levied
in Germany.
Luxembourg
Non-Residents
Under the existing laws of Luxembourg and except as provided for by the Luxembourg laws of 21
June2005 implementing the EU Savings Tax Directive (as defined below), there is no withholding tax on
the payment of interest on, or reimbursement of principal of, the Notes made to non-residents of
Luxembourg.
Under the Luxembourg laws of 21 June 2005 implementing the EU Savings Tax Directive and as a result
of ratification by Luxembourg of certain related agreements with the relevant dependent and associated
territories, payments of interest or similar income made or ascribed by a paying agent established in
Luxembourg to, or for the immediate benefit of, an individual Holder of Notes or certain residual entities,
who, as a result of an identification procedure implemented by the paying agent, are identified as
residents or are deemed to be residents of an EU Member State other than Luxembourg or of certain of
those dependent or associated territories referred to under "EU Savings Tax Directive" below, will be
subject to a withholding tax unless the relevant beneficiary has adequately instructed the relevant paying
agent to provide details of the relevant payments of interest or similar income to the fiscal authorities of
his/her country of residence or deemed residence or, in the case of an individual Holder of Notes, has
provided a tax exemption certificate from his/her fiscal authority in the format required by law to the
relevant paying agent. Where withholding tax is applied, it will be levied at a rate of 35 %.
Residents
According to the law of 23 December 2005, as amended by the law of 17 July 2008, interest on Notes
paid by a Luxembourg paying agent to an individual Holder of Notes who is a resident of Luxembourg or
to a residual entity established in another EU member state or certain dependent or associated territories
(as defined in the EU Savings Tax Directive) securing the payment for such individual will be subject to a
withholding tax of 10 % (the "10 % Withholding Tax").
85
In case of payments of interest by a paying agent established in the EU, in the EEA or in a State which
has concluded an international agreement related to the EU Savings Tax Directive, the Luxembourg
resident individual Holder of Notes may opt to be subject to a 10 % self-applied tax on such interest,
which it must remit to the Luxembourg Treasury (the "10 % Self-applied Tax").
If the individual Holder holds the Notes in the course of the management of his or her private wealth, the
10 % Withholding Tax or the 10 % Self-applied Tax will operate a full discharge of income tax due on
such payments.
Interest on Notes paid by a Luxembourg paying agent to a resident Holder of Notes who is not an
individual is not subject to withholding tax.
When used in the preceding paragraphs "interest", "paying agent" and "residual entity" have the meaning
given thereto in the Luxembourg laws of 21 June 2005 (or the relevant agreements) and 23 December
2005, as amended. "Interest" will include accrued or capitalised interest at the sale, repayment or
redemption of the Notes.
Payments of interest or similar income under the Notes to the clearing system (Wertpapiersammelbank)
of Oesterreichische Kontrollbank Aktiengesellschaft will not give rise to a withholding tax under
Luxembourg law.
EU Savings Tax Directive
Under the EU Council Directive 2003/48/EC dated 3 June 2003 on the taxation of savings income in the
form of interest payments (the "EU Savings Tax Directive") each EU Member State must require paying
agents (within the meaning of such directive) established within its territory to provide to the competent
authority of this state details of the payment of interest (including repayment of a discount upon issue)
made to or collected for any individual resident in another EU Member State as the beneficial owner of
the interest, including interest or similar income received via certain types of entities as defined in the
aforementioned directive. The competent authority of the EU Member State of the paying agent is then
required to communicate this information to the competent authority of the EU Member State of which
the beneficial owner of the interest is a resident.
For a transitional period, Austria and Luxembourg instead opted to withhold tax from interest payments
within the meaning of the EU Savings Tax Directive at a rate of 35 %. The transitional period terminates
at the end of the first full fiscal year following agreement by certain non-EU countries to the exchange of
information relating to such payments, in addition to simultaneous application by certain of those
countries of a withholding tax on such payments at the rate defined before.
In Germany, provisions for implementing the EU Savings Tax Directive have been enacted by legislative
regulations of the Federal Government. These provisions apply since 1 July 2005.
Prospective Holders of Notes should be aware that the European Commission adopted a new draft EU
Savings Tax Directive, which, among other changes, seeks to extend the application of the EU Savings
Tax Directive to (i) payments channelled through certain intermediate structures (whether or not
established in an EU Member State) for the ultimate benefit of an EU resident individual, and (ii) a wider
range of income similar to savings income. Further developments in this respect should be monitored on
a continuing basis, since no certainty exists over whether and when the proposed amendments to the EU
Savings Tax Directive will be implemented. Holders of Notes who are in any doubt as to their position
should consult their professional advisors.
86
SUBSCRIPTION, OFFER AND SALE OF THE NOTES
Offer of the Notes
Bookbuilding process, determination and publication of Pricing Details
Raiffeisen Bank International AG (the "Lead Manager") and Berenberg Bank - Niederlassung Wien,
Raiffeisen-Landesbank Steiermark AG, Raiffeisenverband Salzburg and Sparkasse Oberösterreich (the
"Co-Lead Manager", and together with the Lead Manager, the "Managers") will conduct an accelerated
bookbuilding process which is expected to commence on 20 March 2012 and is expected to end on
21 March 2012. During the bookbuilding process the Managers will offer Notes to institutional investors,
e.g. banks, insurance companies and certain funds, in compliance with applicable public offer
restrictions.
The Issue Price, the Re-Offer Price (which will be equal to the Issue Price minus a sales concession of
1.5 %), the aggregate principal amount of Notes to be issued, the interest rate, the issue proceeds and
the yield of the issue (together, the "Pricing Details") will be determined on the basis of the orders
received and confirmed by the Managers during the bookbuilding process by the time of pricing on the
pricing date which is expected to be on or about 21 March 2012 (the "Pricing Date").
The Re-Offer Price for, and the interest rate of, the Notes will be fixed on the basis of a yield which is
determined by adding a credit spread ("Pricing Credit Spread") to the level of the Midswaps at the time
of pricing. The level of the Midswaps will be determined as the average yield of the bid and ask prices of
Interest-Swap Transactions ("Midswaps") with a maturity similar to 29 September 2017 shown on the
Bloomberg page ICAP or on any other screen page which is conventionally used to price Eurobond
transactions at the time of pricing. The Pricing Credit Spread will be fixed on the basis of the orders
received and confirmed by the Managers.
The resulting yield will be used to determine the Re-Offer (which is expected to be less than par) and the
rate of interest (which is expected to be a percentage figure), all to correspond to the yield which reflects
the level of the Midswaps and the Pricing Credit Spread. In the event that the figures for the relevant
Midswaps will not be shown as set out above, the yield, the Re-Offer and the rate of interest will be
determined in a manner which banks and other institutional market participants apply at that time.
Upon determination, the Pricing Details will be set out in a notice (the "Pricing Notice") which will be
filed with the CSSF and published on the website of the Luxembourg Stock Exchange (www.bourse.lu)
on or after the Pricing Date and prior to the Issue Date.
If for the purpose of Article 13 of the Luxembourg Prospectus Act at any time between the Prospectus is
approved and the final closing of the offer to the public arises or is noted a significant new factor, material
mistake or inaccuracy relating to the information included in the Prospectus, the Issuer will submit to the
CSSF for its approval a supplementary prospectus containing details of the new factor, mistake or
inaccuracy so as to comply with the requirements of Article 13 of the Luxembourg Prospectus Act.
Public Offer
During an offer period which is expected to commence on 22 March 2012 and is expected to end on
26 March 2012 (i.e. two days prior to the Issue Date) (the "Offer Period"), the Notes will be sold to
institutional investors and to retail investors at the Issue Price in compliance with the public offer
restrictions in all countries in the European Union. A public offer will be made in Luxembourg and,
subject to the effectiveness of the notification of the Prospectus by the CSSF to the competent
authorities according to Article 18 of the Prospectus Directive, in Germany and the Republic of Austria.
The Issuer and the Lead Manager may in their discretion decide to shorten the Offer Period. Should the
Issuer and the Lead Manager determine any shortening or extension of the Offer Period (e.g. due to
87
changing market conditions), such changes will be published on the website of the Luxembourg Stock
Exchange (www.bourse.lu) .
Conditions and details of the offer
There are no conditions to which the offer is subject. In particular, there is no minimum or maximum
amount of Notes required to be purchased. Investors may place offers to purchase Notes in any amount,
subject to the Denomination of EUR 1,000 per Note.
Subscription rights for the Notes will not be issued. Therefore, there are no procedures in place for the
exercise of any right of pre-emption, the negotiability of subscription rights and the treatment of
subscription rights not exercised.
Any offer of Notes to investors will be made through the information system Bloomberg or any other
commonly used information systems.
Offers to purchase Notes by the investors
During the bookbuilding process and during Offer Period investors may submit offers to purchase Notes
to the Managers using the information system Bloomberg or any other commonly used information
systems or banking institutions which are connected to the Clearing System. In the case of an order prior
to the determination of the Pricing Details, the investors shall specify at which price they would be
prepared to purchase which amount of Notes. Following determination and notification of the Pricing
Details, any order placed by investors with respect to the Notes will be deemed to have been made at
the Issue Price and the rate of interest determined.
Subscription and allotment of the Notes
Subscription by the Managers
Following the determination of the Pricing Details, the Managers will, pursuant to a subscription
agreement to be signed on or about 26 March 2012 (the "Subscription Agreement"), agree to
subscribe or procure subscribers for the Notes. The Notes will be issued to the Managers and the Re-
Offer Price (which will be equal to the Issue Price minus a sales concession of 1.5 %).
The commission payable to the Managers in connection with the offering, placement and subscription of
the Notes will be up to 0.5 % of the aggregate principal amount of the Notes.
The Managers will be entitled, under certain circumstances, to terminate the agreement reached with the
Issuer. In such event, no Notes will be delivered to investors. Furthermore, the Issuer will agree to
indemnify the Managers against certain liabilities in connection with the offer and sale of the Notes.
The Managers or their affiliates have provided from time to time, and expect to provide in the future,
investment services to the Issuer and its affiliates, for which the Managers or their affiliates have
received or will receive customary fees and commissions. In addition, the Managers or their affiliates are
involved in financing initiatives relating to the Issuer including the provision of an, as yet, undrawn credit
facility.
There are no interests of natural and legal persons other than the Issuer involved in the issue, including
conflicting ones that are material to the issue.
Confirmation of offers placed by, and allotments to, investors
Any investor who has submitted an order in relation to the Notes in the bookbuilding process and whose
order is accepted will receive a confirmation by electronic mail, fax or through commonly used
information systems setting out its respective allotment of Notes. Before an investor receives a
confirmation from the Managers that its offer to purchase Notes has been accepted, the investor may
reduce or withdraw its purchase order.
88
Any investor who has submitted an order in relation to the Notes during the Offer Period whose order is
accepted will receive by its respective depositary bank a notification relating to the respective allotment
of Notes.
Delivery of the Notes to investors
Notes subscribed during the bookbuilding process
Following the determination of the Pricing Details and confirmation which orders have been accepted
and which amounts have been allotted to particular investors during the bookbuilding process, delivery
and payment of the Notes will be made on the Issue Date. The Notes so purchased will be delivered via
book-entry through the Clearing System (see "General Information – Clearing, Settlement and Securities
Codes") against payment of the Re-Offer Price therefor.
Notes purchased during the Offer Period
Following the confirmation which orders have been accepted and which amounts have been allotted to
particular investors during the Offer Period, delivery and payment of the Notes will be made within seven
Business Days after the date of the confirmation of the allotment to investors. The Notes so purchased
will be delivered via book-entry through the Clearing System (see "General Information – Clearing,
Settlement and Securities Codes") and their depository banks against payment of the Re-Offer Price or
the Issue Price, as the case may be, therefor.
Costs and expenses relating to the offer
The Issuer will not charge any costs, expenses or taxes directly to any investor in connection with the
Notes. Investors must, however, inform themselves about any costs, expenses or taxes in connection
with the Notes which are generally applicable in their respective country of residence, including any
charges their own depository banks charge them for purchasing or holding securities.
Trading of the Notes
Application will be made to the Vienna Stock Exchange AG for the Notes to be listed on the Third Market
- MTF of Vienna Stock Exchange AG ("Dritter Markt – MTF der Wiener Börse AG") and to be admitted to
trading on the Third Market - MTF of Vienna Stock Exchange AG ("Dritter Markt – MTF der Wiener Börse
AG").
SELLING RESTRICTIONS
General
Each Manager has represented and agreed that it will (to the best of its knowledge and belief) comply
with all applicable securities laws and regulations in force in any jurisdiction in or from which it
purchases, offers, sells or delivers the Notes or possesses or distributes the Prospectus and that it will
obtain any consent, approval or permission required by it for the purchase, offer, sale or delivery by it of
the Notes under the laws and regulations in force in any jurisdiction to which it is subject or in which it
makes such purchases, offers, sales or deliveries and neither the Issuer nor any of the other Managers
shall have any responsibility therefor.
Neither the Issuer nor any of the Managers has represented that the Notes may at any time lawfully be
sold in compliance with any applicable registration or other requirements in any jurisdiction, or pursuant
to any exemption available thereunder, or assumes any responsibility for facilitating such sale.
With regard to the Notes, the Managers will be required to comply with such other additional restrictions
as the Issuer and the Managers shall agree.
89
European Economic Area
In relation to each Member State of the European Economic Area* which has implemented the
Prospectus Directive (each, a "Relevant Member State"), each Manager has represented, warranted
and agreed that with effect from and including the date on which the Prospectus Directive is implemented
in that Relevant Member State (the "Relevant Implementation Date") it has not made and will not make
an offer of Notes which are the subject of the offering contemplated by this Prospectus to the public in
that Relevant Member State other than the offers contemplated in the Prospectus in Luxembourg,
Germany and Austria from the time the Prospectus has been approved by the competent authority in
Luxembourg and published and notified to the relevant competent authorities in accordance with the
Prospectus Directive as implemented in Luxembourg, Germany and Austria until the Issue Date, and
provided that the Issuer has consented in writing to use of the Prospectus for any such offers, except that
it may, with effect from and including the Relevant Implementation Date, make an offer of such Notes to
the public in that Relevant Member State:
(a) to any legal entity which is a qualified investor as defined in the Prospectus Directive;
(b) to fewer than 100, or, if the Relevant Member State has implemented the relevant provision of the
2010 PD Amending Directive, 150 natural or legal persons (other than qualified investors as
defined in the Prospectus Directive), as permitted under the Prospectus Directive, subject to
obtaining the prior consent of the Managers; or
(c) in any other circumstances falling within Article 3(2) of the Prospectus Directive;
provided that no such offer of the Notes shall require the Issuer or any Manager to publish a prospectus
pursuant to Article 3 of the Prospectus Directive or supplement a prospectus pursuant to Article 16 of the
Prospectus Directive.
For the purposes of this provision, the expression an "offer of Notes to the public" in relation to any
Notes in any Relevant Member State means the communication in any form and by any means of
sufficient information on the terms of the offer and the Notes to be offered so as to enable an investor to
decide to purchase or subscribe the Notes, as the same may be varied in that Member State by any
measure implementing the Prospectus Directive in that Member State and the expression "Prospectus
Directive" means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending
Directive, to the extent implemented in the Relevant Member State), and includes any relevant
implementing measure in the Relevant Member State and the expression "2010 PD Amending
Directive" means Directive 2010/73/EU.
United States of America and its Territories
The Notes have not been and will not be registered under the Securities Act and, subject to certain
exceptions, may not be offered or sold within the United States.
The Notes are being offered and sold outside of the United States in reliance on Regulation S.
In addition, until 40 days after the commencement of the offering of the Notes, an offer or sale of Notes
within the United States by any dealer (whether or not participating in the offering) may violate the
registration requirements of the Securities Act.
*The EU plus Iceland, Norway and Liechtenstein.
90
United Kingdom of Great Britain and Northern Ireland
Each Manager has represented and agreed that,
(a) It has only communicated or caused to be communicated and will only communicate or cause to
be communicated any invitation or inducement to engage in investment activity (within the
meaning of Section 21 of the Financial Services and Markets Act 2000, as amended ("FSMA"))
received by it in connection with the issue or sale of any Notes in circumstances in which Section
21(1) of the FSMA does not apply to the Issuer; and
(b) It has complied and will comply with all applicable provisions of the FSMA with respect to anything
done by it in relation to the Notes in, from or otherwise involving the United Kingdom.
91
GENERAL INFORMATION
Authorisation
The creation and issue of the Notes has been authorised by resolution of the Partners' Meeting
(Gesellschafterversammlung) dated 22 February 2012 and the Executive Board of the Issuer is expected
to be dated 20 March 2012.
Clearing, Settlement and Securities Codes
The Notes have been accepted for clearance by the central securities depository and clearing system
(Wertpapiersammelbank) of Oesterreichische Kontrollbank Aktiengesellschaft and have been assigned
the following securities codes: ISIN AT0000A0UJL6, Common Code 076135851, WKN: A1ML0L.
No Significant Change in the Financial or Trading Position
Other than disclosed in this Prospectus, there has been no significant change in the financial or trading
position of the Issuer or the Group since 30 November 2011.
No Material Change in the Prospects
There has been no material adverse change in the prospects of the Issuer since 28 February 2011.
Listing and Admission to Trading
Application will be made to the Vienna Stock Exchange AG for the Notes to be listed on the Third Market
- MTF of Vienna Stock Exchange AG ("Dritter Markt – MTF der Wiener Börse AG") and to be admitted to
trading on the Third Market - MTF of Vienna Stock Exchange AG ("Dritter Markt – MTF der Wiener Börse
AG").
Third party information
Any information sourced from a third party contained in this Prospectus has been accurately reproduced
and as far as the Issuer is aware and is able to ascertain from information published by that third party,
no facts have been omitted which would render the reproduced information inaccurate or misleading.
Yield
The yield of the Notes based on the Re-Offer Price is [●] % per annum. Such yield is calculated in
accordance with the ICMA (International Capital Markets Association) method.
Rating
The Notes have not been rated.
Expenses of the Issue
The total expenses of the issue of the Notes are expected to amount to EUR 150,000.
92
Documents on Display
For so long as any Note is outstanding, copies of the following documents may be inspected in physical
form during normal business hours at the specified office of the Paying Agent:
(i) The partnership agreement of the Issuer and the Articles of Association of the general partner of
the Issuer;
(ii) this Prospectus and the Pricing Notice;
(iii) the Agency Agreement (Zahlstellenvertrag); and
(iv) all documents incorporated by reference.
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DOCUMENTS INCORPORATED BY REFERENCE
Documents incorporated by reference
The published audited consolidated annual financial statements of Otto Group for the years ended
28 February 2010 and 28 February 2011, in each case including the auditor's report thereon, which have
been published or which are published simultaneously with this Prospectus and filed with the CSSF shall
be incorporated in, and form part of, this Prospectus:
Comparative Table of Documents incorporated by Reference
Section of Prospectus Document incorporated by reference
Otto (GmbH & Co KG), Historical
Financial Information
Audited Consolidated Financial Statements of Otto (GmbH &
Co KG) for the Fiscal Year ending 28 February 2010
(extracted from Otto (GmbH & Co KG)'s Annual Report
2009/2010, consisting of:
- Consolidated Balance Sheet (pages 150 - 151)
- Consolidated Income Statement (pages 148 - 149)
- Consolidated Cash Flow Statement (pages 152 - 153)
- Statement of Changes in Consolidated Equity
(pages 154 - 155)
Notes (pages 156 - 251)
- Auditor's report (page 162)
Audited Consolidated Financial Statements of Otto (GmbH &
Co KG) for the Fiscal Year ending 28 February 2011
(extracted from Otto (GmbH & Co KG)'s Annual Report
2010/2011, consisting of:
- Consolidated Balance Sheet (pages 54 - 55)
- Consolidated Income Statement (pages 52 - 53)
- Consolidated Cash Flow Statement (pages 56 - 57)
- Statement of Changes in Consolidated Equity
(page 58 - 59)
- Notes (pages 60 - 155)
- Auditor's report (page 156)
Any information not listed in the list above but included in documents incorporated by reference is given
for information purposes only.
Availability of incorporated Documents
Any document incorporated herein by reference can be obtained without charge at the offices of the
Issuer as set out at the end of this Prospectus. In addition, such documents will be available free of
charge from the principal office in Vienna of the Paying Agent and will be published on the website of the
Luxembourg Stock Exchange (www.bourse.lu).
94
ISSUER
Otto (GmbH & Co KG)
Wandsbeker Strasse 3-7
22172 Hamburg
Germany
LEAD MANAGER
Raiffeisen Bank International AG
Am Stadtpark 9
1030 Vienna
Austria
CO-LEAD MANAGER
Berenberg Bank -
Niederlassung Wien
Schottenring 12
1010 Wien
Austria
Raiffeisen-Landesbank
Steiermark AG
Joanneumring 20
8010 Graz
Austria
Raiffeisenverband
Salzburg
Schwarzstrasse 13-15
5024 Salzburg
Austria
Sparkasse Oberösterreich
Sparkassenplatz 2
4021 Linz
Austria
PAYING AGENT
Raiffeisen Bank International AG
Am Stadtpark 9
1030 Vienna
Austria
LEGAL ADVISER
To the Managers
as to German law:
Linklaters LLP
Mainzer Landstrasse 16
60325 Frankfurt am Main
Germany
as to Austrian law:
CMS Reich-Rohrwig Hainz, Rechtsanwälte GmbH
Ebendorferstraße 3
1010 Vienna
Austria
AUDITORS
To the Issuer
KPMG AG
Wirtschaftsprüfungsgesellschaft
Michaelis Quartier
Ludwig-Erhard-Str. 11-17
20459 Hamburg
Germany
CLEARING SYSTEM
Wertpapiersammelbank der Oesterreichische Kontrollbank Aktiengesellschaft
Am Hof 4, Strauchgasse 3
1011 Vienna
Austria